The Doha Round Declaration on Cotton: A Catalyst for Poverty Reduction in Africa?
Cotton plays a strategic role in the development policies and poverty reduction programs of a number of African countries. Several African countries have introduced reforms in the cotton sector to improve its quality and competitiveness. The impact of these reforms has to date been virtually nullified by the fact that certain WTO Members continue to apply support measures and subsidies that distort global market prices. These are the arguments behind the Cotton Initiative raised in 2003 in the World Trade Organization (WTO) by Benin, Burkina Faso, Chad and Mali, which reflects the position of the African Group countries until the Sixth WTO Ministerial Conference in Hong Kong recently. In this conference two important policy changes were agreed in international trade of cotton. First, all forms of export subsidies for cotton will be eliminated by developed countries in 2006. Second, developed countries will give duty and quota free access for cotton exports from the least-developed countries (LDCs). This paper uses a computable general equilibrium (CGE) model of the Zambian economy with a three fold purpose: (a) to study the impact of the Doha Round agreement on the cotton sector in Zambia, (b) to analyze the reality of the Doha agreement versus the African countries' cotton initiative during the WTO Hong Kong conference, and (c) to contribute to the analysis of further agricultural trade liberalization and its implications for poor countries. The results show the extent of the benefits of implementation of both, the Doha WTO Round and the African Countries Proposal in Zambia. We quantify the impacts of both policy initiatives on the Zambian cotton sector (production, exports, prices), and agrarian population welfare. The results show that the positive effects of the Cotton Initiative in Zambia are higher than the Doha Round polices benefits.
|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
References listed on IDEAS
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.:
- Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Global impacts of Doha trade reform scenarios on poverty," Policy Research Working Paper Series 3735, The World Bank.
- Kym Anderson & Ernesto Valenzuela, 2007.
"WTOÂ’s Doha Cotton Initiative: A Tale of Two Issues,"
Centre for International Economic Studies Working Papers
2007-06, University of Adelaide, Centre for International Economic Studies.
- Anderson, Kym & Valenzuela, Ernesto, 2006. "WTO's Doha Cotton Initiative: A Tale of Two Issues," CEPR Discussion Papers 5567, C.E.P.R. Discussion Papers.
- 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,"
Center for Agricultural and Rural Development (CARD) Publications
02-wp317, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- 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.
- Lofgren, Hans & Thurlow, James & Robinson, Sherman, 2004. "Prospects for growth and poverty reduction i n Zambia, 2001-2015," DSGD discussion papers 11, International Food Policy Research Institute (IFPRI).
- Balat, Jorge F. & Porto, Guido G., 2005. "The WTO Doha Round, cotton sector dynamics, and poverty trends in Zambia," Policy Research Working Paper Series 3697, The World Bank.
- John Baffes, 2005. "The "Cotton Problem"," World Bank Research Observer, World Bank Group, vol. 20(1), pages 109-144.
- Hausner, Ulrich, 1999. "A 1995 social accounting matrix for Zambia:," TMD discussion papers 49, International Food Policy Research Institute (IFPRI).
- Thurlow, James & Wobst, Peter, 2004. "The road to pro-poor growth in Zambia," DSGD discussion papers 16, International Food Policy Research Institute (IFPRI).
- Ben Shepherd, 2005. "The Impact of US Subsidies on the World Cotton Market: A Reassessment," International Trade 0511012, EconWPA.
- Gillson, I & Poulton, Colin & Balcombe, Kelvin & Page, S, 2004. "Understanding the impact of Cotton Subsidies on developing countries," MPRA Paper 15373, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea06:21161. See general information about how to correct material in RePEc.
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.