Another set of examples of how national currency policy can affect other economic ties comes from the interaction of regional currency relations and regional trade agreements. In January 1999, the Brazilian government allowed the real to float, which led to a very substantial depreciation of the currency. This came on the heels of a dramatic expansion of Brazilian-Argentine trade in the context of Mercosur, a trade agreement strongly favored by both governments. But the devaluation, and the overvalued peso associated with Argentina’s currency board, provoked a flood of imports into Argentina: in the first eight months of 1999, Argentine imports of Brazilian textiles and footwear rose by 38 and 66 percent respectively. This in turn provoked protests from Argentine manufacturers, who forced the Argentine government to impose barriers on Brazilian iron, textiles, and paper. The Brazilians retaliated, complained to the WTO, and even threatened to dissolve Mercosur (Carranza 2003).