Trigger Points of the Special Safeguard Mechanism
AbstractCurrent negotiations of the WTO's Doha Development Agenda include proposals for an agricultural special safeguard policy. The Special Safeguard Mechanism (SSM) under consideration would allow developing countries to invoke additional duties if import quantities rise above or import prices fall below specific trigger levels. We show that a global excess supply shock for a given agricultural commodity is ambiguous in terms of triggering a quantity- or price-based SSM. Using wheat and maize trade data, we show that a global excess supply shock may trigger a Q-SSM for one country and a P-SSM for another. We also provide threshold levels for the magnitude of shocks that would cause the P-SSM or Q-SSM to bind for various countries.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 31 (2011)
Issue (Month): 4 ()
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Doha Development Agenda; World Trade Organization; Special Safeguard Mechanism; wheat; maize;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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- Grant, Jason H. & Meilke, Karl D., 2009.
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Estey Centre Journal of International Law and Trade Policy,
Estey Centre for Law and Economics in International Trade, vol. 10(1).
- Grant, Jason H. & Meilke, Karl D., 2008. "Triggers, Remedies and Tariff Cuts: Assessing the Impact of a Special Safeguard Mechanism for Developing Countries," Working Papers 46627, Canadian Agricultural Trade Policy Research Network.
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