Making the Outcomes of the Doha Development Round Favourable for Developing Countries: Reflections on a Feasible Proposal for a Special Safeguard Mechanism

Abstract

In principle, there is consensus among World Trade organisation members (WTO) on the need to establish Special Safeguard Mechanisms (SSM) for use by developing countries. Building on a survey of literature, empirical studies, and exchange of ideas through participation in the international debate on the subject matter, this paper outlines the architecture of a pro-development SSM. The elaboration is based on ten dimensions: country eligibility, criteria for selection of special products, triggers of safeguard action, precondition for application of safeguard action, geographic coverage, permissible remedies, restrictions on the levels of compensation, time scale, other rules, and treatment of developing countries. Compared to the SSG, it allows trigger levels at lower volumes and higher prices. Also, it differentiates demand increase and import surges, maintains linkages of domestic producers to long-run world market dynamics, and allows the computation of the price trigger on consignment by consignment basis.