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GTAP Resource #2122

"The World Trade Organization’s Cotton Initiative: Two Complementary Opportunities to Boost African Cotton Investment, Incomes and Exports"
by Anderson, Kym and Ernesto Valenzuela

Four West African nations have succeeded in adding to the WTO’s Doha Development Agenda a Cotton Initiative that involves two issues: cutting cotton subsidies and tariffs globally, and assisting cotton farm productivity growth in Africa. This paper provides estimates of the potential economic impacts of: (a) complete or partial removal of cotton subsidies and import tariffs globally and (b) cotton productivity growth through the adoption of genetically modified (GM) cotton varieties. Our economic modeling results suggest that for sub-Saharan Africa, the potential gains of those initiatives would be huge. But those potential gains, and the affordability of switching to costly GM seed, depend crucially on the extent to which high-income countries are willing to lower domestic support to their cotton farmers.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: The AFRICA JOURNAL, The Corporate Council on Africa: AGOA Special Edition.“Promoting Trade and Investment in Sub-Saharan Africa: Opportunities, Obstacles and Realities”, June 2006, pp.21-26
Date: 2006
Created: Valenzuela, E. (5/16/2006)
Updated: Valenzuela, E. (6/8/2006)
Visits: 2,076
- Agricultural policies

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