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Some countries may benefit from preferential duty rates due to trade agreements such as Free Trade Agreements (FTAs) or Most Favored Nation (MFN) status
But it also shows that some economic activity never takes place (deadweight loss): When discussing the economics of taxation, I always try to remind people that deadweight loss also represents foregone taxable activity, which is why the Laffer Curve is a very real thing (as even Paul Krugman admits)
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