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

Author

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

Abstract

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.

Suggested Citation

  • Grant, Jason H. & Meilke, Karl D., . "Triggers, Remedies, and Tariff Cuts: Assessing the Impact of a Special Safeguard Mechanism for Developing Countries," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(01), pages 1-24.
    • Handle: RePEc:ags:ecjilt:50103
    DOI: 10.22004/ag.econ.50103
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    Cited by:

    1. Hertel, Thomas W. & Martin, William J. & Leister, Amanda M., "undated". "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. 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.
    3. Will Martin, 2017. "Agricultural Trade and Food Security," Policy briefs on Economic Trends and Policies 1727, Policy Center for the New South.
    4. 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.
    5. Peyton M Ferrier & Amanda M Leister, 2011. "Trigger Points of the Special Safeguard Mechanism," Economics Bulletin, AccessEcon, vol. 31(4), pages 3211-3220.
    6. 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.
    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. 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.
    9. 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.
    10. Donald MacLaren, 2014. "The Special Safeguard Mechanism (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries," CESifo Working Paper Series 4585, CESifo.

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