The Special Safeguard Mechanism (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries
AbstractThe SSM is a proposal from the G-33 Group in the Doha Round negotiations in which developing countries would be allowed to use contingent tariffs to control import surges of food commodities and/or downward spikes in their border prices. The principal objective is to safeguard the livelihood security of farm households in these countries. A stochastic partial equilibrium model of a typical importing country situation is specified in which there are either imperfectly competitive, domestic intermediaries or a parastatal. Using Monte Carlo simulation, it is found that the objective of the SSM is unlikely to be met.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4585.
Date of creation: 2014
Date of revision:
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
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