The WTO Special Safeguard Mechanism: A Case Study of Wheat

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.

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Working or Discussion Paper
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CATPRN Working Paper 2005-2

 Record created 2017-04-01, last modified 2018-01-22

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