This paper aims to evaluate a number of spatial aspects of Brazil ’s cu- rrent commercial policy,emphasizing those relating to bilateral trade with Argentina, its main trading partner in Mercosur.A national computable general equilibrium mo- del was developed and implemented (EFES-ARG)—integrated with an interstate trade model —,in order to evaluate the sectoral/regional impacts of different trade strategies towards Argentina.The analysis of the short-run regional aspects of Brazil- Argentina trade relations reveals a trend towards concentration of the level of econo- mic activity in the states of the Brazilian south and southeast.