EU Regionalism and External Tariff Protection: The Role of Initial Tariffs and the Heterogeneity of Preferential Market Access

This paper provides evidence that the reduction in bound MFN tariffs is significantly larger for products with initially high tariff levels. These findings highlight the sensitivity of the PTA-external tariff question to the inclusion of initial tariffs, putting into perspective the previously identified stumbling block in a European context. Using micro-level trade and tariff data, we also find evidence that the type of trading partner, as well as the consideration of current or anticipated trade preferences matters.