11th World Trade Organization Ministerial Conference:
Negotiations for a safeguard mechanism for developing countries reaches stalemate
Business manager Raul Q. Montemayor told the Business Mirror that some countries have asked for deeper tariff cuts in exchange for their approval of the special safeguard mechanism.
Montemayor: “Some countries want to link the SSM to tariff cuts. They will give us the SSM, but we have to lower our tariffs in exchange. But our negotiators are pushing back against this. We are standing up for developing countries, so that their agri industry will not be hurt and they can compete in the international market, especially against countries who have highly subsidised products.”
The establishment of SSM is a ‘crucial trade remedy’ for the Philippines, as Filipino farmers are vulnerable to import surges. “Our tariffs are already low, so more imports are coming in.” The SSM is a trade measure that will allow developing countries to raise tariffs temporarily to deal with import surges or price falls. Therein lies the value of the SSM for the Philippines.
