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GTAP Resource #1310

"Perspectives on Cotton Global Trade Reforms"
by MacDonald, Stephen, Leslie Meyer and Agapi Somwaru

World cotton prices fell to nearly unprecedented levels during the 2001/02 marketing
year, causing distress to cotton producers and exporters worldwide. In a number of
developing countries highly dependent on cotton for export earnings or where cotton is
the primary cash crop, this distress was particularly acute. Global trade barriers to
cotton are widespread, leading to some concern about the relationship between these
trade barriers and global welfare. In particular, with the Doha Development Agenda’s
negotiations underway, discussion about the impact of trade barriers on the cotton
sectors of developing countries has become more intense. A static computable general
equilibrium (CGE) model finds that removing cotton tariffs and other trade barriers to
cotton by all countries increases global welfare but only slightly. Global welfare
improves with liberalization, and the welfare of developing countries in aggregate also
improves. However, while some developing countries demonstrably benefit, not all
developing countries see welfare gains. In addition to welfare, removing all global cotton
trade barriers increases world trade in cotton.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2003 Conference Paper
Status: Published
By/In: Presented at the 6th Annual Conference on Global Economic Analysis, The Hague, The Netherlands
Date: 2003
Created: Conner, J. (5/14/2003)
Updated: Bacou, M. (9/27/2003)
Visits: 2,989
- Agricultural policies

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