This paper considers the welfare implications of a discriminatory preferential trading arrangement in a general equilibrium model where imports are differentiated by region of origin and terms of trade are fixed. The relationship between the initial (pre-reform) relative volume of trade with the...

Standards and technical regulations exist to protect consumer safety or to achieve other goals, such as ensuring the interoperability of telecommunications systems, for example. Standards and technical regulations can, however, raise substantially both start-up and production costs for firms....