Abstract
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.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
