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The World Trade Organization's Doha cotton initiative : a tale of two issues

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  • Anderson, Kym
  • Valenzuela, Ernesto

Abstract

Four West African nations have demanded that the World Trade Organization's Doha Development Agenda include a Cotton Initiative that involves two issues: cutting cotton subsidies and tariffs, and assisting farm productivity growth in Africa. The authors provide estimates of the potential economic impacts of (1) complete or partial removal of cotton subsidies and import tariffs globally, and (2) cotton productivity growth through the adoption of genetically modified (GM) cotton varieties. They use the latest version of the GTAP database and model. Their results confirm that-unlike for other agricultural subsidies and tariffs-for cotton 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.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3918.

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Date of creation: 01 May 2006
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Handle: RePEc:wbk:wbrwps:3918

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Keywords: Economic Theory&Research; Crops&Crop Management Systems; Tax Law; Textiles; Apparel&Leather Industry; Wholesale&Retail Trade Industry;

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  1. 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.
  2. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2005. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Centre for International Economic Studies Working Papers, University of Adelaide, Centre for International Economic Studies 2005-18, University of Adelaide, Centre for International Economic Studies.
  3. Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The relative importance of global agricultural subsidies and market access," World Trade Review, Cambridge University Press, Cambridge University Press, vol. 5(03), pages 357-376, November.
  4. John Baffes, 2005. "The "Cotton Problem"," World Bank Research Observer, World Bank Group, World Bank Group, vol. 20(1), pages 109-144.
  5. 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.
  6. 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.
  7. Kym Anderson & Lee Ann Jackson, 2005. "Some Implications of GM Food Technology Policies for Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 14(3), pages 385-410, September.
  8. Anderson, Kym & Martin, William J., 2007. "Distortions to Agricultural Incentives in Asia," Agricultural Distortions Working Paper, World Bank 48557, World Bank.
  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, vol. 33(4), pages 591-595, December.
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Cited by:
  1. Kym Anderson & Ernesto Valenzuela & Lee Ann Jackson, 2008. "Recent and Prospective Adoption of Genetically Modified Cotton: A Global Computable General Equilibrium Analysis of Economic Impacts," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 265-296.
  2. 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).
  3. 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.
  4. Anderson, Kym & Valenzuela, Ernesto, 2005. "Do Global Trade Distortions Still Harm Developing Country Farmers?," CEPR Discussion Papers 5337, C.E.P.R. Discussion Papers.
  5. Stephen Tokarick, 2008. "Dispelling Some Misconceptions about Agricultural Trade Liberalization," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 199-216, Winter.
  6. 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.
  7. Martin, William J. & Anderson, Kym, 2008. "Agricultural trade reform under the Doha Agenda: some key issues," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 52(1), March.
  8. 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.
  9. 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, vol. 33(2), pages 260-279.
  10. 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.
  11. 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.
  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. repec:laf:wpaper:201002 is not listed on IDEAS

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