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The World Trade Organisation's Doha Cotton Initiative: A Tale of Two Issues

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  • Kym Anderson
  • Ernesto Valenzuela

Abstract

Four West African nations have demanded that the WTO's Doha Development Agenda include a Cotton Initiative that involves two issues: cutting cotton subsidies and tariffs, and assisting 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. Use is made of the GTAP database and global economic model to address both these issues. On Doha, our results confirm that for cotton - unlike for other agricultural subsidies and tariffs - it is subsidy reductions rather than tariff cuts that would make by far the largest impact. For Sub-Saharan Africa the potential gains are huge relative to the effects on that region of reforming other merchandise trade policies. And they could be more than doubled if that reform provided the cash for farmers to take advantage of the biotechnology revolution and adopt GM cotton varieties. 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. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 30 (2007)
Issue (Month): 8 (08)
Pages: 1281-1304

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Handle: RePEc:bla:worlde:v:30:y:2007:i:8:p:1281-1304

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  1. Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The relative importance of global agricultural subsidies and market access," Policy Research Working Paper Series 3900, The World Bank.
  2. Huang, Jikun & Rozelle, Scott & Martin, William J. & Liu, Yu, 2007. "Distortions to Agricultural Incentives in China," Agricultural Distortions Working Paper, World Bank 48478, World Bank.
  3. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 15(4), pages 626-670, December.
  4. Kym Anderson & Ernesto Valenzuela & Lee Ann Jackson, 2007. "Recent and Prospective Adoption of Genetically Modified Cotton: A Global CGE Analysis of Economic Impacts," Centre for International Economic Studies Working Papers, University of Adelaide, Centre for International Economic Studies 2007-07, University of Adelaide, Centre for International Economic Studies.
  5. Kym Anderson & Lee Ann Jacskon, 2004. "Some Implications of GM Food Technology Policies for Sub-Saharan Africa," Centre for International Economic Studies Working Papers, University of Adelaide, Centre for International Economic Studies 2004-09, University of Adelaide, Centre for International Economic Studies.
  6. Kym Anderson & Will Martin, 2005. "Agricultural Trade Reform and the Doha Development Agenda," Centre for International Economic Studies Working Papers, University of Adelaide, Centre for International Economic Studies 2005-17, University of Adelaide, Centre for International Economic Studies.
  7. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications, The World Bank, number 2611, August.
  8. John Baffes, 2005. "The "Cotton Problem"," World Bank Research Observer, World Bank Group, World Bank Group, vol. 20(1), pages 109-144.
  9. Harald Grethe, 2006. "Agricultural Trade Reform and the Doha Development Agenda," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(4), pages 591-595, December.
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Cited by:
  1. Anderson, Kym & Valenzuela, Ernesto, 2006. "Do global trade distortions still harm developing country farmers ?," Policy Research Working Paper Series 3901, The World Bank.
  2. Antoine Bou�t & Guillaume P. Gru�re, 2011. "Refining Opportunity Cost Estimates of Not Adopting GM Cotton: An Application in Seven Sub-Saharan African Countries," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 33(2), pages 260-279.
  3. repec:laf:wpaper:201002 is not listed on IDEAS
  4. Baffes, John, 2010. "Markets for cotton by-products : global trends and implications for African cotton producers," Policy Research Working Paper Series 5355, The World Bank.
  5. Stephen Tokarick, 2008. "Dispelling Some Misconceptions about Agricultural Trade Liberalization," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 22(1), pages 199-216, Winter.
  6. Will Martin & Kym Anderson, 2007. "Agricultural Trade Reform Under the Doha Agenda: Some Key Issues," Centre for International Economic Studies Working Papers, University of Adelaide, Centre for International Economic Studies 2007-03, University of Adelaide, Centre for International Economic Studies.
  7. Kym Anderson & Ernesto Valenzuela & Lee Ann Jackson, 2007. "Recent and Prospective Adoption of Genetically Modified Cotton: A Global CGE Analysis of Economic Impacts," Centre for International Economic Studies Working Papers, University of Adelaide, Centre for International Economic Studies 2007-07, University of Adelaide, Centre for International Economic Studies.
  8. Shepherd, Ben & Delpeuch, Claire, 2007. "Subsidies and regulatory reform in West African cotton: What are the development stakes?," MPRA Paper 2289, University Library of Munich, Germany.
  9. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2013. "Estimating Effects of Price-Distorting Policies Using Alternative Distortions Databases," Handbook of Computable General Equilibrium Modeling, Elsevier, Elsevier.
  10. Anderson, Kym & Valenzuela, Ernesto & Jackson, Lee Ann, 2006. "Recent and prospective adoption of genetically modified cotton : a global computable general equilibrium analysis of economic impacts," Policy Research Working Paper Series 3917, The World Bank.
  11. Wafula, David & Gruère, Guillaume P., 2013. "Genetically modified organisms, exports, and regional integration in Africa," IFPRI book chapters, in: Falck-Zepeda, Jose Benjamin & Gruère, Guillaume P. & Sithole-Niang, Idah (ed.), Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara, chapter 5, pages 143-157 International Food Policy Research Institute (IFPRI).
  12. Pitoro, Raul & Walker, Thomas S. & Tschirley, David L. & Swinton, Scott M. & Boughton, Duncan & de Marrule, Higino Francisco, 2009. "Can Bt Technology Reduce Poverty Among African Cotton Growers? An Ex Ante Analysis of the Private and Social Profitability of Bt Cotton Seed in Mozambique," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51633, International Association of Agricultural Economists.
  13. Anderson, Kym & Valenzuela, Ernesto & van der Mensbrugghe, Dominique, 2009. "Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model," Agricultural Distortions Working Paper, World Bank 52785, World Bank.

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