Potential Implications of a Special Safeguard Mechanism in the World Trade Organization : The Case of Wheat

Hertel, Thomas W.; Martin, Will; Leister, Amanda M.

dc.creator	Hertel, Thomas W.
dc.creator	Martin, Will
dc.creator	Leister, Amanda M.
dc.date	2012-03-30T07:12:38Z
dc.date	2012-03-30T07:12:38Z
dc.date	2010-08-30
dc.date.accessioned	2023-02-18T19:41:56Z
dc.date.available	2023-02-18T19:41:56Z
dc.identifier	World Bank Economic Review
dc.identifier	1564-698X
dc.identifier	http://hdl.handle.net/10986/4524
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/250009
dc.description	The special safeguard mechanism—both quantity- and price-based—was key in the July 2008 failure to reach agreement in the World Trade Organization negotiations under the Doha Development Agenda. A stochastic simulation model of the world wheat market is used to investigate the effects of the special safeguard mechanism. As expected, the quantity-based safeguard is found to reduce imports, raise domestic prices, and boost mean domestic production in the countries that implement it. However, rather than insulating developing countries in those regions from price volatility, the quantity-based safeguard increases domestic price volatility, largely by restricting imports when domestic output is low and prices are high. The quantity-based safeguard shrinks average wheat imports nearly 50 percent in some regions, and global wheat trade falls by 4.7 percent. The price-based safeguard discriminates against lower price exporters and contributes to producer price instability.
dc.publisher	World Bank
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights	World Bank
dc.subject	average price
dc.subject	commodity prices
dc.subject	competitiveness
dc.subject	domestic market
dc.subject	international markets
dc.subject	market price
dc.subject	market volatility
dc.subject	price adjustment
dc.subject	price changes
dc.subject	price variations
dc.subject	price volatility
dc.subject	producer price
dc.subject	producer prices
dc.subject	sale
dc.subject	substitution
dc.subject	supplier
dc.subject	suppliers
dc.subject	supply curve
dc.subject	world market
dc.subject	world markets
dc.title	Potential Implications of a Special Safeguard Mechanism in the World Trade Organization : The Case of Wheat
dc.type	Journal Article
dc.type	Journal Article
dc.coverage	Australia