The developing countries currently enjoy preferential entry on designated exports of manufactures under the Canadian Scheme of Generalized Preferences introduced in 1974. This paper makes a quantitative assessment of the erosion of such preferential margins likely to result from current...

This paper explores in quantitative terms the potential effects on trade flows as a result of Canadian tariff preferences in favor of the developing countries instituted in 1974. The paper develops a model of trade creation and trade diversion due to preferences based on imperfect substitution,...