U.S. Proposal for WTO Hong Kong Ministerial Conference: What's at Stake for Cotton Producers?
AbstractThis study analyzed the cost to U.S. cotton producers of two policy alternatives under which the U.S. seeks to cut its total AMS payments for cotton by 60%. We considered two scenarios; the U.S. decides to act unilaterally versus conducting the policy initiative along with multilateral tariff and subsidy eliminations from the Rest of the World. The study found a 12% cut in target price and 8% cut in loan rate are necessary to reach the 60% AMS targeted reduction under the unilateral scenario. In that regards, U.S. net farm income decreases considerably despite an appreciation of U.S. farm price. Under a multilateral trade liberalization from the Rest of the World, a 9% cut in the loan rate and 4% in loan rate are enough to reach the AMS reduction threshold. The study found there is 20% chance that net farm income would appreciate and 80% chance that it would decline. However, the decline is less severe compared to the situation where the U.S. acts alone. Overall, the sole beneficiaries in both policies are mainly the major exporters such as Brazil, Australia, West Africa, and Uzbekistan.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21273.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
United States; Hong Kong; Cotton subsidies; tariff; net farm income; International Relations/Trade; Q11; Q17;
Find related papers by JEL classification:
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gardner, Bruce L., 2003. "U.S. Agricultural Policies, Since 1995, with a Focus on Market Effects in Grains and Oilseeds," Working Papers 28553, University of Maryland, Department of Agricultural and Resource Economics.
- John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2001.
"Cost of the U.S. Sugar Program Revisited, The,"
Food and Agricultural Policy Research Institute (FAPRI) Publications
01-wp273, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Beghin, John C. & El Osta, Barbara & Cherlow, Jay R. & Mohanty, Samarendu, 2003. "Cost of the U.S. Sugar Program Revisited, The," Staff General Research Papers 1947, Iowa State University, Department of Economics.
- John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2001. "Cost of the U.S. Sugar Program Revisited, The," Center for Agricultural and Rural Development (CARD) Publications 01-wp273, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Richardson, James W. & Klose, Steven L. & Gray, Allan W., 2000. "An Applied Procedure For Estimating And Simulating Multivariate Empirical (Mve) Probability Distributions In Farm-Level Risk Assessment And Policy Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(02), August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.