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Poverty impacts of the volume-based special safeguard mechanism

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  • Ivanic, Maros
  • Martin, Will

Abstract

The volume-based Special Safeguard Mechanism (Q-SSM) was proposed as essential for small, poor farmers and became the proximate cause of the collapse of the Doha Agenda negotiations in 2008. But is it helpful for these farmers, given that it is likely to be applied when farm output is depressed and many poor farmers in developing countries need to buy food? Stochastic simulations for 31 countries suggest that use of this safeguard in line with the proposed WTO rules would raise the world poverty headcount by an average of 24 million. The adverse poverty impact of the duty is larger when the quantity safeguard is triggered than it would be in other years, because lower farm output reduces the benefits to poor farm households from higher prices.

Suggested Citation

  • Ivanic, Maros & Martin, Will, 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), October.
  • Handle: RePEc:ags:aareaj:280196
    DOI: 10.22004/ag.econ.280196
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    1. Kym Anderson, 2023. "Agriculture's globalization: Endowments, technologies, tastes and policies," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1314-1352, September.
    2. Anderson, Kym, 2022. "Trade-related food policies in a more volatile climate and trade environment," Food Policy, Elsevier, vol. 109(C).
    3. 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.
    4. Kym Anderson, 2021. "Food policy in a more volatile climate and trade environment," Departmental Working Papers 2021-25, The Australian National University, Arndt-Corden Department of Economics.
    5. Popp, J. & Olah, J. & Peto, K., 2018. "Short Food Suply Chains in Europe: differences between the EU-15 and EU-13," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277136, International Association of Agricultural Economists.
    6. Donald MacLaren, 2016. "The Contingent Tariff of the Special Safeguard Mechanism: What Happens When Markets are Imperfectly Competitive?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 62-83, February.
    7. Countryman, Amanda & Ufer, Danielle, 2016. "Potential Poverty Effects of the Special Safeguard Mechanism: the Case of Wheat," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236023, Agricultural and Applied Economics Association.

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    Keywords

    Food Security and Poverty;

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