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The WTO Special Safeguard Mechanism: A Case Study of Wheat

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

Abstract

A special safeguard mechanism is an attractive policy tool for low income importing countries because it is automatic and does not require an injury test. Exporters might accept a safeguard for low income countries if it results in larger tariff cuts than in its absence. Using wheat as a case study the effects of a special safeguard mechanism on market stability and welfare are evaluated. The results show that a safeguard mechanism is not very trade distorting and costs less than 20 percent of the world welfare gain that would be realized if developing countries were not granted a safeguard.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:catpwp:24158
    DOI: 10.22004/ag.econ.24158
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    File URL: https://ageconsearch.umn.edu/record/24158/files/wp050002.pdf
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    References listed on IDEAS

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    1. Valdés, Alberto & Foster, William, 2003. "Special safeguards for developing country agriculture: a proposal for WTO negotiations," World Trade Review, Cambridge University Press, vol. 2(1), pages 5-31, March.
    2. 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).
    3. Somwaru, Agapi & Skully, David, 2003. "Will Special Agricultural Safeguards Advance or Retard LDC Growth and Welfare? A Dynamic General Equilibrium Analysis," Conference papers 331147, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    Cited by:

    1. Rude, James & Meilke, Karl D., 2005. "Implications of the July 2004 WTO Framework Agreement for Canadian Agriculture," Commissioned Papers 24159, Canadian Agricultural Trade Policy Research Network.

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    International Relations/Trade;

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