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The Special safeguards mechanism (SSM) of WTO:
1. Is one of the key issues under Doha Development Agenda?
2. It embodies the right to impose trade barriers if there is a surge in agricultural imports.
3. A ceiling of 20% is fixed by WTO under SSM
Which of the above statement(s) is/are incorrect?
1 & 2 only
3 only
1 and 3 only
None
Explanation: WTO’s Special Safeguard Mechanism (SSM) is a protection measure allowed for developing countries to take contingency restrictions against agricultural imports that are causing injuries to domestic farmers. The contingency measure is imposition of tariff if the import surge causes welfare loss to the domestic poor farmers. The design and use of the SSM is an area of conflict under the WTO. In WTO’s terms, safeguards are contingency or emergency restrictions on imports taken temporarily to deal with special circumstances such as a surge in imports. Contingency restriction means imposition of an import tax if the imports are causing injuries to domestic agricultural sector. The original GATT itself allows such restrictions to protect domestic economy. At the Doha Ministerial Conference, the developing countries were given a concession to adopt a Special Safeguard Mechanism (SSM) besides the existing safeguards (like the Special Agricultural Safeguard or the SSG). This SSM constituted an important part of the promises offered to the developing world at Doha (known as Doha Development Agenda) and the Doha MC became known as a development round. As mentioned, the Special Safeguard Mechanism (SSM) allowed developing countries to raise import duties on agricultural products in response to import surges.
By: Abhipedia ProfileResourcesReport error
Siddharth Jena
Please review this, I think question asks incorrect 1-2 are correct.
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