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Assessing the Impacts of the Chinese TRQ System and U.S. Subsidies on the World Cotton Market

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  • Pan, Suwen
  • Welch, Mark
  • Mohanty, Samarendu
  • Fadiga, Mohamadou L.
  • Ethridge, Don E.

Abstract

This article compares how eliminating the U.S. cotton subsidy program and the Chinese cotton tariff-rate quota (TRQ) would affect the world cotton market. The results show China's TRQ has a greater negative impact on the world cotton market than do U.S. subsidies. Compared to a base-level estimate, the elimination of China's TRQ increases the world cotton price and increases the quantity of world cotton traded, whereas the elimination of U.S. cotton subsidies increases the cotton price (but less than under TRQ elimination) and decreases the world cotton trade. The combined effect of eliminating both programs is also shown.

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Bibliographic Info

Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

Volume (Year): 06 (2005)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:ags:ecjilt:23895

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Keywords: International Relations/Trade;

References

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  1. Bruce A. Babcock & John C. Beghin & Jacinto F. Fabiosa & Stephane De Cara & Amani Elobeid & Cheng Fang & Chad E. Hart & Murat Isik & Holger Matthey & Alexander E. Saak & Karen Kovarik & FAPRI Staff, 2002. "Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 02-wp317, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  2. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank.
  3. Balagtas, Joseph Valdes & Rickard, Bradley J. & Sumner, Daniel A., 2002. "Effects Of Proposed Trade Barriers For Milk Protein Concentrate And Casein Imports On The U.S. Dairy Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19730, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Skully, David W., 2001. "Economics Of Tariff-Rate Quota Administration," Technical Bulletins 33576, United States Department of Agriculture, Economic Research Service.
  5. van der Mensbrugghe, Dominique & Beghin, John C. & Mitchell, Don, 2003. "Implementing Tariff Rate Quotas In Cge Models: An Application To Sugar Trade Policies In Oecd Countries," 2003 Annual meeting, July 27-30, Montreal, Canada 22098, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Sreedharan, Prasanna & Devadoss, Stephen & Stodick, Leroy & Wahl, Thomas I., 2003. "Effects Of Trade Barriers On U.S. Apple Exports," 2003 Annual meeting, July 27-30, Montreal, Canada 22172, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Hoekman, Bernanrd & Ng, Francis & Olarreaga, Marcelo, 2003. "Reducing agrcultural tariffs versus domestic support : what's more important for developing countries?," Policy Research Working Paper Series 2918, The World Bank.
  8. Langley, Suchada V. & Blayney, Donald P. & Stout, Jim & Somwaru, Agapi & Normile, Mary Anne & Miller, James J. & Stillman, Richard, 2003. "A Trade Liberalization In International Dairy Markets," 2003 Annual meeting, July 27-30, Montreal, Canada 21997, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Petrolia, Daniel R. & Kennedy, P. Lynn, 2002. "A Partial-Equilibrium Simulation Of Increasing The U.S. Tariff-Rate Sugar Quota For Cuba And Mexico," 2002 Annual meeting, July 28-31, Long Beach, CA 19764, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Koo, Won W., 2000. "The Impacts Of China'S Accession Into The Wto On The U.S. Wheat Industry," Agricultural Economics Reports 23320, North Dakota State University, Department of Agribusiness and Applied Economics.
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