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

Cinthia Cabral Da Costa, Heloisa Lee Burnquist, Joaquim Guilhoto and Kennya B. Siqueira

Applied Economics, 2019, vol. 51, issue 53, 5727-5740

Abstract: 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.

Date: 2019
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DOI: 10.1080/00036846.2019.1619016

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