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US–Brazil Cotton Dispute and the World Cotton Market

Author

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  • William Ridley
  • Stephen Devadoss

Abstract

type="main" xml:id="twec12146-abs-0001"> US policies for its cotton producers depress world cotton prices, adversely affecting exporters such as Brazil, which filed a complaint to the WTO. Despite WTO rulings in Brazil's favour, meting out the right to enact retaliatory countermeasures, the United States continues to subsidise its cotton farmers. After prolonged negotiations, Brazil and the United States reached an agreement which allowed the United States to pay Brazil to refrain from enforcing the countermeasures. To capture the adverse effects of US policies, theoretical analyses are conducted. The theoretical model is extended by constructing an empirical model of the world cotton market. The adverse effects of US policies on Brazil are estimated and compared to the compensation the United States pays Brazil.

Suggested Citation

  • William Ridley & Stephen Devadoss, 2014. "US–Brazil Cotton Dispute and the World Cotton Market," The World Economy, Wiley Blackwell, vol. 37(8), pages 1081-1100, August.
    • Handle: RePEc:bla:worlde:v:37:y:2014:i:8:p:1081-1100
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    File URL: http://hdl.handle.net/10.1111/twec.2014.37.issue-8
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    Citations

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    Cited by:

    1. Stephen Devadoss & Jeff Luckstead, 2020. "US–Brazilian cotton policies," The World Economy, Wiley Blackwell, vol. 43(8), pages 2222-2236, August.
    2. Vorotnikova, Ekaterina & Devadoss, Stephen, 2016. "The Effects of Panama Canal Expansion on US Dairy Trade Flows: West, East, and Gulf District Regions," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-20, August.
    3. Stephen Devadoss & William Ridley, 2014. "Effects of the Mexican Apple Tariff on the World Apple Market," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 763-777, November.
    4. Ridley, William & Devadoss, Stephen, 2015. "Argentina's Agricultural Policies," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205421, Agricultural and Applied Economics Association.

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