Final answer:
The trade pact developed in 1988 between Argentina and Brazil is known as MERCOSUR, a major South American trading bloc aimed at promoting economic development and reducing trade barriers among member states.
Step-by-step explanation:
The trade pact developed in 1988 initially between Argentina and Brazil is called MERCOSUR, which stands for the Southern Common Market (Mercado Común del Sur). This agreement was established with the aim of "accelerating sustained economic development based on social justice, environmental protection, and poverty reduction." Since its inception, MERCOSUR has grown to include other countries in the region such as Paraguay, Uruguay, and later Venezuela and Bolivia, although Venezuela was suspended in 2017.
MERCOSUR is one of the prominent regional trading agreements that have been established in South America, similar to how other regions have formed agreements like the EU and NAFTA. These trading blocs have a common goal to reduce tariffs, import quotas, and nontariff barriers in order to foster increased trade and economic development among member countries.