Should special agricultural safeguard be ignored? An evaluation for dairy trade

This study measured the impact of special agricultural safeguards (SSG) on dairy products imports by the US and Japan. It was observed that dairy products have been the most affected by this protectionist measures, and that these countries are relevant importers that impose SSG. The tariff lines sub...

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Bibliographic Details
Published in:Applied economics 2019-11, Vol.51 (53), p.5727-5740
Main Authors: Costa, Cinthia Cabral Da, Burnquist, Heloisa Lee, Guilhoto, Joaquim José Martins, Siqueira, Kennya B.
Format: Article
Language:English
Subjects:
Agriculture
Brazil
Dairy products
Economic analysis
Economic theory
Imports
input-output matrix
Milk
Safeguards
Special safeguard
SSG
Tariffs
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Summary:This study measured the impact of special agricultural safeguards (SSG) on dairy products imports by the US and Japan. It was observed that dairy products have been the most affected by this protectionist measures, and that these countries are relevant importers that impose SSG. The tariff lines subject to SSG were selected, and the period of analysis was from 1995 to 2015. The results showed that the impact of SSG applied by the US was much higher than for Japan. The overall estimated value of imports that did not happen due to the application of SSGs was approximately USD 2 billion. Specifically for the Brazilian economy, the condensed milk not exported to the US due to SSG applied cost the country BRL 345 million in GDP value and almost 4.5 thousand jobs. These results might be underestimating these effects, since the SSG tariff was not subject to calculation in several years.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036846.2019.1619016