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Triggers, Remedies and Tariff Cuts: Assessing the Impact of a Special Safeguard Mechanism for Developing Countries

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  • Grant, Jason H.
  • Meilke, Karl D.

Abstract

On July 30, 2008, the WTO negotiations broke down because Members could not bridge their differences on the operation of a Special Safeguard Mechanism (SSM) for low-income countries. This study evaluates two scenarios concerning the recent July (2008) SSM proposal – one in which low-income countries are allowed to breach their pre-Doha bound tariffs and one in which they are not -- using a global, stochastic, partial equilibrium model of world wheat markets. We find that the July (2008) SSM proposal is not very trade distorting despite leading to sizeable SSM duties. Moreover, the question of whether developing countries should be allowed to exceed their pre-Doha bound tariffs depends heavily on the product under consideration, the extent of tariff cuts to bound rates, and the gap between a Members bound and applied tariffs, particularly when the volume-based SSM remedies are used

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Bibliographic Info

Paper provided by Canadian Agricultural Trade Policy Research Network in its series Working Papers with number 46627.

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Date of creation: Oct 2008
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Handle: RePEc:ags:catpwp:46627

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Related research

Keywords: WTO; SSM; special safeguard mechanism; Doha; Agricultural and Food Policy; International Relations/Trade;

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  1. Vald S, Alberto & Foster, William, 2003. "Special safeguards for developing country agriculture: a proposal for WTO negotiations," World Trade Review, Cambridge University Press, vol. 2(01), pages 5-31, March.
  2. Somwaru, Agapi & Skully, David W., 2005. "Will Special Agricultural Safeguards Advance or Retard LDC Growth and Welfare? A Dynamic General Equilibrium Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19533, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Jason H. Grant & Karl D. Meilke, 2006. "The World Trade Organization Special Safeguard Mechanism: A Case Study of Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 24-47.
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Cited by:
  1. Hertel, Thomas W. & Martin, William J. & Leister, Amanda M., 2010. "Potential Implications of a Special Safeguard Mechanism in the WTO: the Case of Wheat," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61000, Agricultural and Applied Economics Association.
  2. Peyton M Ferrier & Amanda M Leister, 2011. "Trigger Points of the Special Safeguard Mechanism," Economics Bulletin, AccessEcon, vol. 31(4), pages 3211-3220.
  3. Donald MacLaren, 2014. "The Special Safeguard Mechanism (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries," CESifo Working Paper Series 4585, CESifo Group Munich.

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