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

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

The WTO negotiations broke down on July 30th, 2008 because members could not bridge their differences over the operation of a Special Safeguard Mechanism (SSM). This article evaluates the latest SSM proposal using the world wheat market as our case study. Whether low-income WTO members should be allowed to breach their pre-Doha bound tariffs is a key element of our analysis. The SSM leads to sizeable additional duties but is not very trade distorting, even when pre-Doha bound rates are breached. Moreover, the extent to which low-income countries should be allowed to exceed pre-Doha bound rates depends heavily on the product under consideration, the ambition of the tariff cutting exercise, and the gap between members’ bound and applied tariffs.

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Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

Volume (Year): 10 (2009)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:ecjilt:50103
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  1. 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).
  2. 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.
  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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