Chinese Tariff Rate Quota v.s. U.S. Subsidies: What Affects the World Cotton Market More?

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

No 19111, 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper compares how eliminating the Chinese cotton tariff rate quota (TRQ) and the U.S. cotton subsidy program would affect the world cotton market. The results show China's TRQ has a greater negative impact on the world cotton market than U.S. subsidies. Compared to a base level estimate, the elimination of China's TRQ will increase the world cotton price and increase 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)
Pages: 27
Date: 2005
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea05:19111

DOI: 10.22004/ag.econ.19111

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