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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

Suggested Citation

  • 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.
    • Handle: RePEc:ags:catpwp:46627
    DOI: 10.22004/ag.econ.46627
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    References listed on IDEAS

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    1. 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.
    2. Valdã‰S, Alberto & Foster, William, 2003. "Special safeguards for developing country agriculture: a proposal for WTO negotiations," World Trade Review, Cambridge University Press, vol. 2(1), pages 5-31, March.
    3. Somwaru, Agapi & Skully, David, 2003. "Will Special Agricultural Safeguards Advance or Retard LDC Growth and Welfare? A Dynamic General Equilibrium Analysis," Conference papers 331147, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    Cited by:

    1. Gouel, Christophe & Mitaritonna, Cristina & Ramos, Maria Priscila, 2011. "Sensitive products in the Doha negotiations: The case of European and Japanese market access," Economic Modelling, Elsevier, vol. 28(6), pages 2395-2403.
    2. Maros Ivanic & Will Martin, 2014. "Poverty impacts of the volume-based special safeguard mechanism," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(4), pages 607-621, October.
    3. Martin, Will, 2017. "Agricultural Trade and Food Security," ADBI Working Papers 664, Asian Development Bank Institute.
    4. Hertel, Thomas W. & Martin, Will & Leister, Amanda M., 2010. "Potential implications of a special safeguard mechanism in the WTO : the case of wheat," Policy Research Working Paper Series 5334, The World Bank.
    5. Deb, Surajit, 2014. "Ageing and Consumer Spending: Some Preliminary Findings from India and China," Conference papers 332531, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Countryman, Amanda M. & Narayanan, Badri G., 2017. "Price volatility, tariff structure and the special safeguard mechanism," Economic Modelling, Elsevier, vol. 64(C), pages 399-408.
    7. Naranpanawa, Athula & Bandara, Jayathileka S., 2011. "Poverty and Growth Impacts of High Oil Prices: Evidence from Sri Lanka," Conference papers 332139, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Peyton M Ferrier & Amanda M Leister, 2011. "Trigger Points of the Special Safeguard Mechanism," Economics Bulletin, AccessEcon, vol. 31(4), pages 3211-3220.
    9. Donald MacLaren, 2014. "The Special Safeguard Mechanism (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries," CESifo Working Paper Series 4585, CESifo.
    10. Gilbert, John & Oladi, Reza, 2010. "Regional Trade Reform Under SAFTA and Income Distribution in South Asia," Conference papers 331945, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    Keywords

    Agricultural and Food Policy; International Relations/Trade;

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