We study, theoretically and empirically, how countries choose intra-bloc tariffs and preferential margins when they form Preferential Trade Agreements (PTAs). Our model indicates that countries should set systematically lower preferential margins when the bloc takes the form of a free trade area...

Introduction -- EU Preferential Trading Arrangements: Evolution, Content and Use -- EU Preferential Margins: Measurement and Aggregation Issues -- The Gravity Model in International Trade -- Trade Impact of EU Preferential Policies: a Meta-analysis of the Literature -- Trade Impact of EU...