Special Products and the Special Safeguard Mechanism: Strategic Options for Developing Countries
25th November 2005
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While it is widely recognised that developing countries, as a whole, will benefit from removing trade distortions in agricultural trade, some fear that vulnerable farming communities in developing countries might suffer from further trade liberalisation in the Doha Round. As tariffs are removed, the livelihood of communities employed in import-competing sectors might be affected by lower prices, mainly resulting from international competition in subsidized products. In a response to this concern, the General Council Decision of 1st August 2004 gives developing countries the flexibility to designate an appropriate number of products as Special Products (SPs) based on criteria of food security, livelihood security and rural development needs. These products will be eligible for more flexible treatment. In addition, it states that a Special Safeguard Mechanism (SSM) will be established for use by developing country members.
The purpose of the informal dialogue was to present and discuss some of the implications of the current WTO negotiations on agriculture in this regard. With this background, the ICTSD presented its recent paper “Special Products and the Special Safeguard Mechanism: Strategic Options for Developing Countries”. The aim of the paper is to contribute to the ongoing WTO negotiations by providing some empirical and scientific elaboration on the particular concepts of SPs and the SSM from a sustainable development perspective that could be of practical use to developing country negotiators. The paper provides possible options in terms of the SP/SSM negotiations that could ensure that modalities agreed upon in the lead-up to the Hong Kong Ministerial Conference are pro-poor and pro-development, as well as responsive to the, food-security, livelihood security and rural development needs of developing countries.
The informal dialogue was initiated by Ms. Sandra Polaski, the Carnegie Endowment for International Peace, who presented new modelling research on the differential impact of the Doha Round negotiations on different developing countries and regions. The findings were based on a general equilibrium model of global trade with emphasis on trade in agriculture and low-skilled labour, which are issues of particular concern to developing countries. The presentation outlined some of the implications for the Doha negotiations and identified potential winners and losers of the Doha Round, as well as possible responses for developing countries. For example, it was argued that the current agricultural trade debate lacks a critically needed focus on small-scale farming as a source of livelihood security, thus failing to deal with the trade impact on the poor.
In this context, the ICTSD presented some of the findings and experiences learned from different developing countries in the process of identification of possible SPs and products eligible for the SSM in the preparation of a number of country case studies commissioned by the ICTSD. In addition, representatives from Indonesia and the Philippines presented the rationale and state of play on SPs and the SSM in the ongoing WTO negotiations on agriculture. See Documents for the entire presentations.
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