THE SPECIAL SAFEGUARD MECHANISM IN THE DOHA DEVELOPMENT AGENDA: A CASE STUDY OF SOYBEANS

The Special Safeguard Mechanism (SSM) proposed for developing countries has become a thorny issue in the Doha Development Agenda’s (DDA) agricultural negotiations. Proponents of the mechanism argue that it is a necessary compromise to counter sharp price declines or rapid import surges in staple commodity markets of developing nations. Opponents of the SSM, which include many developed exporters, contend that the policy flexibility contained in current SSM proposals would severely limit market access if the mechanism is triggered. The impact of the SSM depends on a number of parameters: the number of times the SSM is triggered, whether the price or volume SSM is triggered, the size of current tariffs, the magnitude with which tariffs are reduced in the DDA, and the number of times a developing country will actually make use of the SSM. This study introduces a static, synthetic, global, partial equilibrium model of the world soybean complex to assess the preliminary aspects of the DDA’s proposed tariff cuts. Future work on this project will extend the model to a stochastic framework from which to simulate the effects of an SSM combined with the DDA tariff cutting formulas for developing nations.


Subject(s):
Issue Date:
2010-07
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/61762
PURL Identifier:
http://purl.umn.edu/61762
Total Pages:
26
Series Statement:
Selected Paper
11283




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

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