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Will Special Agricultural Safeguards Advance or Retard LDC Growth and Welfare? A Dynamic General Equilibrium Analysis

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  • Somwaru, Agapi
  • Skully, David W.

Abstract

This study examines the potential magnitude and distribution of the costs and benefits of allowing developing countries to establish Special Safeguards (SSGs) for staple agricultural commodities. An inter-temporal general equilibrium model used to simulate the static and dynamic effects of SSGs. Our results indicate that developing countries in aggregate lose welfare when SSGs are imposed for staple food and for all agricultural commodities as opposed to agricultural trade liberalization without SSGs. However, the distribution of gains and losses among developing countries is not uniform.

Suggested Citation

  • 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).
    • Handle: RePEc:ags:aaea05:19533
    DOI: 10.22004/ag.econ.19533
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    References listed on IDEAS

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    1. Ianchovichina, Elena, 2002. "Trade policy analysis in the presence of duty drawbacks," Policy Research Working Paper Series 3312, The World Bank.
    2. Will Martin & Elena Ianchovichina, 2001. "Implications of China’s Accession to the World Trade Organisation for China and the WTO," The World Economy, Wiley Blackwell, vol. 24(9), pages 1205-1219, September.
    3. Warwick J. McKibbin & K. K. Tang, 2000. "Trade and Financial Reform in China: Impacts on the World Economy," The World Economy, Wiley Blackwell, vol. 23(8), pages 979-1003, August.
    4. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    5. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    6. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    7. Will Martin, 1993. "The Fallacy of Composition and Developing Country Exports of Manufactures," The World Economy, Wiley Blackwell, vol. 16(2), pages 159-172, March.
    8. Huang, Jikun & Rozelle, Scott, 2002. "The Nature And Distortions To Agricultural Incentives In China And Implications Of Wto Accession," Working Papers 11970, University of California, Davis, Department of Agricultural and Resource Economics.
    9. Dean Spinanger, 1999. "Textiles Beyond the MFA Phase‐Out," The World Economy, Wiley Blackwell, vol. 22(4), pages 455-476, June.
    10. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Grant, Jason H. & Meilke, Karl D., 2004. "Import Safeguards: Protectionist Measures Or A Liberalization Strategy?," 2004 Annual meeting, August 1-4, Denver, CO 20236, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Grant, Jason H. & Meilke, Karl D., 2009. "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(1), pages 1-24, May.
    3. Grant, Jason H. & Meilke, Karl D., 2005. "The WTO Special Safeguard Mechanism: A Case Study of Wheat," Working Papers 24158, Canadian Agricultural Trade Policy Research Network.
    4. 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.
    5. Mr. Jean-Jacques Hallaert, 2005. "Special Agricultural Safeguards: Virtual Benefits and Real Costs—Lessons for the Doha Round," IMF Working Papers 2005/131, International Monetary Fund.

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