Assessing the Impacts of the Chinese TRQ System and U.S. Subsidies on the World Cotton Market

Suwen Pan, Mark Welch, Samarendu Mohanty, Mohamadou L. Fadiga and Don E. Ethridge

Estey Centre Journal of International Law and Trade Policy, 2005, vol. 06, issue 2, 16

Abstract: This article compares how eliminating the U.S. cotton subsidy program and the Chinese cotton tariff-rate quota (TRQ) would affect the world cotton market. The results show China's TRQ has a greater negative impact on the world cotton market than do U.S. subsidies. Compared to a base-level estimate, the elimination of China's TRQ increases the world cotton price and increases the quantity of world cotton traded, whereas the elimination of U.S. cotton subsidies increases the cotton price (but less than under TRQ elimination) and decreases the world cotton trade. The combined effect of eliminating both programs is also shown.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ecjilt:23895

DOI: 10.22004/ag.econ.23895

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