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

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

Abstract

On July 30, 2008, the WTO negotiations broke down because Members could not bridge their differences on the operation of a Special Safeguard Mechanism (SSM) for low-income countries. This study evaluates two scenarios concerning the recent July (2008) SSM proposal – one in which low-income countries are allowed to breach their pre-Doha bound tariffs and one in which they are not -- using a global, stochastic, partial equilibrium model of world wheat markets. We find that the July (2008) SSM proposal is not very trade distorting despite leading to sizeable SSM duties. Moreover, the question of whether developing countries should be allowed to exceed their pre-Doha bound tariffs depends heavily on the product under consideration, the extent of tariff cuts to bound rates, and the gap between a Members bound and applied tariffs, particularly when the volume-based SSM remedies are used

Suggested Citation

  • Grant, Jason H. & Meilke, Karl D., 2008. "Triggers, Remedies and Tariff Cuts: Assessing the Impact of a Special Safeguard Mechanism for Developing Countries," Working Papers 46627, Canadian Agricultural Trade Policy Research Network.
    • Handle: RePEc:ags:catpwp:46627
    DOI: 10.22004/ag.econ.46627
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    1. Jason H. Grant & Karl D. Meilke, 2006. "The World Trade Organization Special Safeguard Mechanism: A Case Study of Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 24-47.
    2. 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.
    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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    1. Hertel, Thomas W. & Martin, William J. & Leister, Amanda M., 2010. "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. Will Martin, 2017. "Agricultural Trade and Food Security," Research papers & Policy papers on Trade Dynamics and Policies 1706, Policy Center for the New South.
    3. Will Martin, 2017. "Agricultural Trade and Food Security," Policy briefs on Economic Trends and Policies 1727, Policy Center for the New South.
    4. 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.
    5. 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.
    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. Peyton M Ferrier & Amanda M Leister, 2011. "Trigger Points of the Special Safeguard Mechanism," Economics Bulletin, AccessEcon, vol. 31(4), pages 3211-3220.
    8. Donald MacLaren, 2014. "The Special Safeguard Mechanism (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries," CESifo Working Paper Series 4585, CESifo.
    9. 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.
    10. 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.
    11. 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.

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    Keywords

    Agricultural and Food Policy; International Relations/Trade;

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