The Special Safeguard Mechanisms (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries

27 Pages Posted: 5 Feb 2014

See all articles by Donald MacLaren

Donald MacLaren

University of Melbourne - Department of Economics

Date Written: January 30, 2014

Abstract

The SSM is a proposal from the G-33 Group in the Doha Round negotiations in which developing countries would be allowed to use contingent tariffs to control import surges of food commodities and/or downward spikes in their border prices. The principal objective is to safeguard the livelihood security of farm households in these countries. A stochastic partial equilibrium model of a typical importing country situation is specified in which there are either imperfectly competitive, domestic intermediaries or a parastatal. Using Monte Carlo simulation, it is found that the objective of the SSM is unlikely to be met.

JEL Classification: F120, F130, Q170

Suggested Citation

MacLaren, Donald, The Special Safeguard Mechanisms (SSM) and Tariffs: Price Behaviour with Imperfectly Competitive Market Intermediaries (January 30, 2014). CESifo Working Paper Series No. 4585. Available at SSRN: https://ssrn.com/abstract=2390627

Donald MacLaren (Contact Author)

University of Melbourne - Department of Economics ( email )

Victoria 3010, 3010
Australia
(61) 3 8344-5035 (Phone)
(61) 3 8344-6899 (Fax)

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