Special Safeguard Mechanism for Agriculture: Implications for Developing Members at the World Trade Organization

2021 ◽  
Vol 22 (5-6) ◽  
pp. 835-859
Author(s):  
Abhijit Das ◽  
Sachin Kumar Sharma ◽  
Raihan Akhter ◽  
Teesta Lahiri

Abstract With rising levels of food and livelihood insecurity among poor farmers, many developing members at the World Trade Organization (WTO) are demanding a special safeguard mechanism (SSM) for shielding their agriculture from import surges and price declines. Similar to special agricultural safeguards (SSGs) which are available only to some members, SSM seeks to provide flexibility to developing members to breach the bound tariff in special cases of import surges and price dips. In this context, this study identifies the agricultural products facing import surges in eight selected developing members. The study evaluates the policy space available to selected members in terms of tariff overhang under their existing schedules as well as proposed tariff reductions under agriculture negotiations. Besides this, it critically scrutinizes various issues such as cross-check conditions, triggers and remedies in order to highlight the sensitivities of developing members in accessibility, effectiveness, and other technical aspects of SSM.

2018 ◽  
Vol 67 (1) ◽  
pp. 129-165 ◽  
Author(s):  
Gracia Marín Durán

AbstractSince the Canada – Renewable Energy (2013) dispute at the World Trade Organization (WTO), the WTO Agreement on Subsidies and Countervailing Measures (SCM) has been the focal point of academic debate on the trade-environment interface, with a growing consensus that WTO subsidy rules need to be revisited with a view to securing ‘policy space’ for government support for renewable energy. This article explores whether, as suggested by some scholars, the European Union (EU)’s system of justifications for renewable energy aid could serve as a source of inspiration for the WTO. While this proposition may appear attractive at first sight, it is hardly conceivable, or even desirable, that the EU's approach to sheltering government support for renewable energy could be transposed to the WTO. This is because the two systems of subsidy control are fundamentally different in both substantive and procedural terms and, importantly, these differences reflect distinct objectives and political/institutional contexts. Nonetheless, this comparative analysis sheds light on where the key challenges lie for the WTO in ensuring that international trade rules and climate change mitigation objectives are mutually supportive. It is argued that the case for reviewing the SCM Agreement cannot be made by simply forging parallels with the EU's regulatory model, but needs to be carefully construed on the basis of a proper understanding of whether and how green policy space is actually constrained under the current WTO subsidy and trade remedy rules. However, this requires better information on existing WTO members’ practice in relation to renewable energy subsidies, as well as on their environmental effectiveness and possible trade-distortive impact. In this sense, the most valuable lesson that the WTO can draw from the EU's regulatory experience is the imperative of improving the transparency and knowledge-enhancing elements of its subsidy control system.


2021 ◽  
Vol 10 (2) ◽  
pp. 163
Author(s):  
Velicia Theoartha Manalu ◽  
Sinta Dewi Rosadi ◽  
Prita Amalia

<em>The practice of the regionalization principle in Article 6 Sanitary and Phytosanitary (SPS) Agreement is still conflicted. This is because of several cases regarding the members misinterpretation of international guidelines in the regionalization principle, such as India – Agricultural Products and Russia – Pigs (EU). Recently, Coronavirus Diseases 2019 (Covid-19) has been considered to affect animal trade. Such conditions prompt the World Trade Organization (WTO)  to recommend the Members to take SPS Measures to protect their domestic market. However, the trade would be inhibited in case the country-wide ban approach is applied. Therefore, this paper discusses the possible SPS measures under the regionalization principle to promote the trade during the pandemic according to WTO decisions from previous cases in line with the VCLT of 1969. The research result shows that the Covid-19 is an obstacle to international trade and makes humans and animals vulnerable to this virus. Consequently, many animal trades have been banned to prevent its spread. To deal with this condition, Indonesia could apply the regionalization principle in Article 6 SPS Agreement. Moreover, the government should update the quarantine law by pointing out the regionalization principle, unlike the zone system rules only applied to animals susceptible to Food Mouth Disease</em>


2018 ◽  
Vol 64 (No. 9) ◽  
pp. 379-388 ◽  
Author(s):  
 Fojtíková Lenka

The paper provides evidence on the implementation of China’s trade commitments into its institutional and legal environment, which influenced its agricultural trade. The contribution to the trade balance index and the revealed comparative advantage index are used for the identification of changes in China’s export competitiveness in agricultural products between 2001 and 2015. The World Trade Organization (WTO) trade liberalisation, followed by changes in the structure of economy, contributed to China building a trade deficit in the area of the agricultural products and losing competitiveness in some products. China gradually liberalised its agricultural trade in compliance with the WTO commitments. However, relatively high protection or state regulation of the domestic market has remained in products that China exports with a revealed comparative disadvantage. The existence of the state trading can also have a negative impact on the results of China’s revealed comparative advantage in its exports of agricultural products.


2005 ◽  
Vol 4 (S1) ◽  
pp. 133-157
Author(s):  
Kyle Bagwell ◽  
Alan O. Sykes

This study addresses the dispute brought to the World Trade Organization (WTO) by Argentina concerning certain Chilean measures affecting the importation of wheat, wheat flour, oil seeds, edible vegetable oils and sugar. The complaint by Argentina challenged two types of policies – a “price band system” that was applicable to four of those product categories, and safeguards measures that were applicable to three of them. The WTO panel ruled in favor of Argentina on both sets of measures. It found that the price band system violated Article IV of the Agriculture Agreement and Article II of GATT 1994. The safeguards measures, according to the panel, violated various provisions of the Safeguards Agreement, as well as Article XIX of GATT 1994. Chile elected not to appeal the panel ruling regarding the safeguards measures, but did appeal the adverse finding as to the price band system.


2016 ◽  
Vol 25 (1) ◽  
pp. 56
Author(s):  
Budiman Hutabarat ◽  
Bambang Rahmanto

<strong>English</strong><br />Indonesia and most developing countries (DGCs) are very enthusiastic to be part of the World Trade Organization (WTO) in a hope that free and fair trade could materialize and bring an improvement to their economies in the near future. Recognizing the fragile of their agricultural sectors and general economies, the WTO actually confers some provisions to DGCs in their transition to more open economies. But until the time of the Special Safeguard Mechanism (SSM) and Special Product (SP) introduction in July 2004, these provisions are hardly used by the DGCs for many reasons, which further provoke the DGCs to call for the SSM and SP provisions.  As the SSM and SP facilities are already in existence, Indonesia and the G-33 should not leave these facilities as blank cheque that only to be written by ineligible party. They have to be active to formulate modalities and rules for the SSM implementation.<br /><br /><br /><strong>Indonesian</strong><br />Indonesia dan pada umumnya negara berkembang (NB) sangat bersemangat dalam perundingan Organisasi Perdagangan Dunia (OPD) dengan harapan bahwa di masa datang perdagangan bebas dan adil dapat terwujud dan memberi manfaat bagi perekonomian negara bersangkutan di masa depan.  Sebenarnya OPD telah menyadari akan rapuhnya sektor pertanian dan ekonomi negara berkembang ini dalam menghadapi liberalisasi perekonomian dunia, sehingga mereka diberikan pengecualian-pengecualian penerapan beberapa aturan OPD. Namun, sampai saat diperkenalkannya Mekanisme Perlindungan Khusus (MPK) dan Produk Khusus (PK) pada Juli 2004, pengecualian-pengecialian itu tidak dapat dilaksanakan NB sendiri karena berbagai alasan, yang mendorong mereka menuntut adanya fasilitas baru, yakni MPK dan PK. Dengan telah tersedianya fasilitas MPK dan PK ini, Indonesia dan K-33 seyogianya tidak membiarkannya sebagai cek kosong yang hanya akan ditulis oleh pihak yang tidak berhak. Indonesia dan K-33 harus aktif merumuskan modalitas dan aturan pelaksanaan MPK.


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