Special safeguard mechanism
Also called: SSM · Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
The special safeguard mechanism (SSM) is a proposed WTO tool. It would let developing countries raise farm tariffs for a short time when imports surge or prices crash. The aim is to protect poor farmers from sudden floods of cheap imports. The G-33 group, which India helps lead, proposed it, and it is still unresolved.
Example
Disagreement over the SSM helped collapse the 2008 July package in the Doha Round. The need it addresses is shown by the Anantapur groundnut farmer in Class 11 NCERT. After import restrictions were removed, local markets were "flooded with cheap imported edible oils".
Don't confuse with
- Special safeguard (SSG): this already exists under the Agreement on Agriculture, but only for countries that converted their non-tariff barriers into tariffs (tariffication). The SSM is a proposed tool for developing countries only.
- Safeguard duty: this is a general tool for any product. It needs proof of "serious injury" and applies to imports from all sources.
Related concepts
- Amber Box
- Aggregate measurement of support
- De minimis
- Blue Box
- Green Box
- Development Box
- Public stockholding for food security
- External reference price
- Peace clause