IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

A Need for Caution in Applying the Volume-Based Special Safeguard Mechanism

Listed author(s):
  • Ivanic, Maros
  • Martin, William J.

The proximate cause of the collapse of the Doha Agenda negotiations in 2008 was disagreement over the volume-based Special Safeguard Mechanism (SSM). This measure would provide a right, but not an obligation, for developing countries to impose a duty when imports increase. While many simulations of its impact on domestic prices are available, there appear to be no analyses of its potential impacts on the welfare of poor households. Whether such a safeguard will increase or reduce poverty can only be determined empirically—if there are enough small, poor farmers who are net sellers of the commodity when the duty is imposed, then imposition of a safeguard duty may reduce poverty. If, by contrast, most small, poor farmers are net buyers of the products subject to the duty, then it is likely that poverty will rise. Empirical analysis for twenty-eight countries finds that poverty is generally increased following the imposition of a safeguard-type measure. The adverse poverty impact of the safeguard-induced increase in prices is typically larger when the safeguard can be triggered, because the adverse output shocks typically giving rise to import surges when import prices have not declined reduce the benefit to poor producing households from higher prices.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103969.

in new window

Date of creation: 2011
Handle: RePEc:ags:aaea11:103969
Contact details of provider: Postal:
555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202

Phone: (414) 918-3190
Fax: (414) 276-3349
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:103969. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.