Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat
The Special Safeguard Mechanism was a key issue in the July 2008 failure to reach agreement in the World Trade Organization negotiations under the Doha Development Agenda. It includes both price and quantity-triggered measures. This paper uses a st...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100606235900 http://hdl.handle.net/10986/3820 |
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okr-10986-38202021-04-23T14:02:13Z Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat Hertel, Thomas W. Martin, Will Leister, Amanda M. AGRICULTURAL ECONOMICS AGRICULTURAL PRICE ANTI-DUMPING DUTIES AVERAGE PRICE BILATERAL TRADE CHANGES IN PRICES CLIMATE COMMODITY COMMODITY PRICES COMPETITIVENESS COUNTRY MARKETS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY MARKETS DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES DOMESTIC PRODUCERS DOMESTIC PRODUCTION DUMPING EXPORT COMPETITIVENESS EXPORT PRICE EXPORT PRICES EXPORT SUPPLY EXPORTS FOOD PRICES FREE TRADE FREE TRADE AGREEMENTS GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL EXPORT GLOBAL MARKETS GLOBAL TRADE IMPORT DUTIES IMPORT DUTY IMPORT PRICE IMPORT PRICES IMPORT VALUE IMPORT VOLUME IMPORTS INCOME INCOMES INTERNATIONAL LAW INTERNATIONAL MARKETS INTERNATIONAL TRADE LOWER PRICES MARKET PRICE MARKET VOLATILITY MONETARY FUND MULTILATERAL TRADE NEGOTIATIONS OUTPUT POLICY MAKERS PREFERENTIAL BASIS PRICE ADJUSTMENT PRICE CHANGES PRICE COMPARISON PRICE FLOOR PRICE INSTABILITY PRICE VARIATION PRICE VOLATILITY PRODUCER PRICE PRODUCER PRICES RELATIVE PRICES SALE SCENARIOS SMALL ECONOMY SOURCING SPECIAL SAFEGUARD STOCKS SUBSTITUTION SUPPLIER SUPPLIERS SUPPLY CURVE SUPPLY CURVES SUPPLY SHOCKS SURPLUS SUSTAINABLE DEVELOPMENT TARIFF BINDINGS TARIFF LEVELS TARIFF LINES TARIFF RATE TARIFF RATES TRADE DISTORTIONS TRADE MODEL TRADE POLICY TRADE VOLUME TRADING PARTNERS WHEAT TRADE WORLD MARKET WORLD MARKETS WORLD TRADE The Special Safeguard Mechanism was a key issue in the July 2008 failure to reach agreement in the World Trade Organization negotiations under the Doha Development Agenda. It includes both price and quantity-triggered measures. This paper uses a stochastic simulation model of the world wheat market to investigate the effects of policy makers implementing policies based on the Special Safeguard Mechanism rules. As expected, implementation of the quantity-triggered measures is found to reduce imports, raise domestic prices, and boost mean domestic production in the Special Safeguard Mechanism regions. However, rather than insulating countries that use it from price volatility, it would actually increase domestic price volatility in developing countries, largely by restricting imports when domestic output is low and prices high. This paper estimates that implementation of the quantity-triggered measures would shrink average wheat imports by nearly 50 percent in some regions, with world wheat trade falling by 4.7 percent. The price measures discriminate against low price exporters -- many of whom are developing countries -- and tend to increase producer price instability. 2012-03-19T18:40:24Z 2012-03-19T18:40:24Z 2010-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100606235900 http://hdl.handle.net/10986/3820 English Policy Research working paper ; no. WPS 5334 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGRICULTURAL ECONOMICS AGRICULTURAL PRICE ANTI-DUMPING DUTIES AVERAGE PRICE BILATERAL TRADE CHANGES IN PRICES CLIMATE COMMODITY COMMODITY PRICES COMPETITIVENESS COUNTRY MARKETS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY MARKETS DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES DOMESTIC PRODUCERS DOMESTIC PRODUCTION DUMPING EXPORT COMPETITIVENESS EXPORT PRICE EXPORT PRICES EXPORT SUPPLY EXPORTS FOOD PRICES FREE TRADE FREE TRADE AGREEMENTS GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL EXPORT GLOBAL MARKETS GLOBAL TRADE IMPORT DUTIES IMPORT DUTY IMPORT PRICE IMPORT PRICES IMPORT VALUE IMPORT VOLUME IMPORTS INCOME INCOMES INTERNATIONAL LAW INTERNATIONAL MARKETS INTERNATIONAL TRADE LOWER PRICES MARKET PRICE MARKET VOLATILITY MONETARY FUND MULTILATERAL TRADE NEGOTIATIONS OUTPUT POLICY MAKERS PREFERENTIAL BASIS PRICE ADJUSTMENT PRICE CHANGES PRICE COMPARISON PRICE FLOOR PRICE INSTABILITY PRICE VARIATION PRICE VOLATILITY PRODUCER PRICE PRODUCER PRICES RELATIVE PRICES SALE SCENARIOS SMALL ECONOMY SOURCING SPECIAL SAFEGUARD STOCKS SUBSTITUTION SUPPLIER SUPPLIERS SUPPLY CURVE SUPPLY CURVES SUPPLY SHOCKS SURPLUS SUSTAINABLE DEVELOPMENT TARIFF BINDINGS TARIFF LEVELS TARIFF LINES TARIFF RATE TARIFF RATES TRADE DISTORTIONS TRADE MODEL TRADE POLICY TRADE VOLUME TRADING PARTNERS WHEAT TRADE WORLD MARKET WORLD MARKETS WORLD TRADE |
| spellingShingle |
AGRICULTURAL ECONOMICS AGRICULTURAL PRICE ANTI-DUMPING DUTIES AVERAGE PRICE BILATERAL TRADE CHANGES IN PRICES CLIMATE COMMODITY COMMODITY PRICES COMPETITIVENESS COUNTRY MARKETS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY MARKETS DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES DOMESTIC PRODUCERS DOMESTIC PRODUCTION DUMPING EXPORT COMPETITIVENESS EXPORT PRICE EXPORT PRICES EXPORT SUPPLY EXPORTS FOOD PRICES FREE TRADE FREE TRADE AGREEMENTS GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL EXPORT GLOBAL MARKETS GLOBAL TRADE IMPORT DUTIES IMPORT DUTY IMPORT PRICE IMPORT PRICES IMPORT VALUE IMPORT VOLUME IMPORTS INCOME INCOMES INTERNATIONAL LAW INTERNATIONAL MARKETS INTERNATIONAL TRADE LOWER PRICES MARKET PRICE MARKET VOLATILITY MONETARY FUND MULTILATERAL TRADE NEGOTIATIONS OUTPUT POLICY MAKERS PREFERENTIAL BASIS PRICE ADJUSTMENT PRICE CHANGES PRICE COMPARISON PRICE FLOOR PRICE INSTABILITY PRICE VARIATION PRICE VOLATILITY PRODUCER PRICE PRODUCER PRICES RELATIVE PRICES SALE SCENARIOS SMALL ECONOMY SOURCING SPECIAL SAFEGUARD STOCKS SUBSTITUTION SUPPLIER SUPPLIERS SUPPLY CURVE SUPPLY CURVES SUPPLY SHOCKS SURPLUS SUSTAINABLE DEVELOPMENT TARIFF BINDINGS TARIFF LEVELS TARIFF LINES TARIFF RATE TARIFF RATES TRADE DISTORTIONS TRADE MODEL TRADE POLICY TRADE VOLUME TRADING PARTNERS WHEAT TRADE WORLD MARKET WORLD MARKETS WORLD TRADE Hertel, Thomas W. Martin, Will Leister, Amanda M. Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5334 |
| description |
The Special Safeguard Mechanism was a
key issue in the July 2008 failure to reach agreement in the
World Trade Organization negotiations under the Doha
Development Agenda. It includes both price and
quantity-triggered measures. This paper uses a stochastic
simulation model of the world wheat market to investigate
the effects of policy makers implementing policies based on
the Special Safeguard Mechanism rules. As expected,
implementation of the quantity-triggered measures is found
to reduce imports, raise domestic prices, and boost mean
domestic production in the Special Safeguard Mechanism
regions. However, rather than insulating countries that use
it from price volatility, it would actually increase
domestic price volatility in developing countries, largely
by restricting imports when domestic output is low and
prices high. This paper estimates that implementation of the
quantity-triggered measures would shrink average wheat
imports by nearly 50 percent in some regions, with world
wheat trade falling by 4.7 percent. The price measures
discriminate against low price exporters -- many of whom are
developing countries -- and tend to increase producer price instability. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Hertel, Thomas W. Martin, Will Leister, Amanda M. |
| author_facet |
Hertel, Thomas W. Martin, Will Leister, Amanda M. |
| author_sort |
Hertel, Thomas W. |
| title |
Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat |
| title_short |
Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat |
| title_full |
Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat |
| title_fullStr |
Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat |
| title_full_unstemmed |
Potential Implications of a Special Safeguard Mechanism in the WTO : The Case of Wheat |
| title_sort |
potential implications of a special safeguard mechanism in the wto : the case of wheat |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100606235900 http://hdl.handle.net/10986/3820 |
| _version_ |
1764388514734014464 |