The Generalised System of Preferences and Canadian Imports of Manufactured and Semi‐Manufactured Products from Developing Countries

The effects of reductions in Canadian tariffs on imports from thirty non‐OPEC Third World countries are estimated using quarterly data for the period 1972–79. Estimates of total trade expansion, trade diversion and trade creation are obtained using linear and a log‐linear specification. The results imply that the trade diversion effect is in general and for most commodity groups larger than the trade creation effect.