This paper quantifies the distortions from specific tariffs levied by the EU. The most-favored-nation (MFN) specific … tariffs levied by the EU translate into higher tariff barriers for poor countries exporting low price goods. We show that for … poor countries, these higher tariff barriers from specific tariffs offset the gains from preferential tariffs. We apply a …

country's relative size or relative average productivity. Furthermore, in the two-country Nash equilibrium, tariffs turn out … to be strategic substitutes. Small or poor economies set lower Nash tariffs than large or rich ones. Lower transportation … costs or smaller fixed market entry costs induce higher equilibrium tariffs and larger welfare losses relative to the case …