India's trade deficit with China widened from $23 billion in 2010 to $35 billion in 2013, accounting for 25% of India's total trade deficit. What is driving this widening of the trade gap and what options does India have to close the gap?
This paper takes a detailed look at the special safeguard mechanism for agriculture proposed in the Doha round of the World Trade Organisation and analyses its usefulness for developing countries. It also explores how the concept of a special agricultural safeguard has evolved in the present round of negotiations and the country positions on SSMs. The paper then proposes a price-trigger-based SSM instrument which is consistent with the goals spelt out in the Doha development agenda and satisfies most of the desired features of a special safeguard instrument.
