The Special Safeguard Mechanism (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries
The SSM is a proposal from the G-33 Group in the Doha Round negotiations in which developing countries would be allowed to use contingent tariffs to control import surges of food commodities and/or downward spikes in their border prices. The principal objective is to safeguard the livelihood security of farm households in these countries. A stochastic partial equilibrium model of a typical importing country situation is specified in which there are either imperfectly competitive, domestic intermediaries or a parastatal. Using Monte Carlo simulation, it is found that the objective of the SSM is unlikely to be met.
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| Date of creation: | 2014 |
| Handle: | RePEc:ces:ceswps:_4585 |
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- McCorriston, Steve & MacLaren, Donald, 2005. "The trade distorting effect of state trading enterprises in importing countries," European Economic Review, Elsevier, vol. 49(7), pages 1693-1715, October.
- 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).
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- Kym Anderson & Maros Ivanic & Will Martin, 2013. "Food Price Spikes, Price Insulation and Poverty," NBER Working Papers 19530, National Bureau of Economic Research, Inc.
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- Thomas W. Hertel & Will Martin & Amanda M. Leister, 2010. "Potential Implications of a Special Safeguard Mechanism in the World Trade Organization: the Case of Wheat," World Bank Economic Review, World Bank Group, vol. 24(2), pages 330-359, August.
- Wolfe, Robert, 2009. "The special safeguard fiasco in the WTO: the perils of inadequate analysis and negotiation," World Trade Review, Cambridge University Press, vol. 8(04), pages 517-544, October.
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