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

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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

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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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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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Article
- Kym Anderson & Ernesto Valenzuela, 2007. "The World Trade Organisation's Doha Cotton Initiative: A Tale of Two Issues," The World Economy, Blackwell Publishing, vol. 30(8), pages 1281-1304, 08. [Downloadable!] (restricted)

This paper has been announced in the following NEP Reports:

NEP-AGR-2006-05-13 (Agricultural Economics)
NEP-ALL-2006-05-13 (All new papers)
NEP-INT-2006-05-13 (International Trade)

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.:

Kym Anderson & Lee Ann Jackson, 2005. "Some Implications of GM Food Technology Policies for Sub-Saharan Africa," Journal of African Economies, Oxford University Press, vol. 14(3), pages 385-410, September.
Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The relative importance of global agricultural subsidies and market access," World Trade Review, Cambridge University Press, vol. 5(03), pages 357-376, November. [Downloadable!]
Other versions:
- Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The Relative Importance of Global Agricultural Subsidies and Market Access," CEPR Discussion Papers 5569, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The Relative Importance of Global Agricultural Subsidies and Market Access," 2006 Annual meeting, July 23-26, Long Beach, CA 21180, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
- Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The relative importance of global agricultural subsidies and market access," Policy Research Working Paper Series 3900, The World Bank. [Downloadable!]
John Baffes, 2005. "The "Cotton Problem"," World Bank Research Observer, Oxford University Press, vol. 20(1), pages 109-144.
Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Would multilateral trade reform benefit Sub-Saharan Africans?," Policy Research Working Paper Series 3616, The World Bank. [Downloadable!]
Other versions:
- Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," CEPR Discussion Papers 5049, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Would Multilateral Trade Reform Benefit Sub-Saharan Africans?," Journal of African Economies, Oxford University Press, vol. 15(4), pages 626-670, December.
Kym Anderson & Will Martin, 2005. "Agricultural Trade Reform and the Doha Development Agenda," The World Economy, Blackwell Publishing, vol. 28(9), pages 1301-1327, 09. [Downloadable!] (restricted)
Other versions:
- Anderson, Kym & Martin, Will, 2005. "Agricultural trade reform and the Doha development agenda," Policy Research Working Paper Series 3607, The World Bank. [Downloadable!]
Harald Grethe, 2006. "Agricultural Trade Reform and the Doha Development Agenda," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 33(4), pages 591-595, December.

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Cited by:
(explanations, 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 & Valenzuela, Ernesto & Jackson, Lee Ann, 2006. "Recent and prospective adoption of genetically modified cotton : a global computable general equilibrium analysis of economic impacts," Policy Research Working Paper Series 3917, The World Bank. [Downloadable!]
Other versions:
- 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. [Downloadable!]
Kym Anderson & Ernesto Valenzuela, 2007. "Do Global Trade Distortions Still Harm Developing Country Farmers?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(1), pages 108-139, April. [Downloadable!] (restricted)
Other versions:
- Anderson, Kym & Valenzuela, Ernesto, 2005. "Do Global Trade Distortions Still Harm Developing Country Farmers?," CEPR Discussion Papers 5337, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Anderson, Kym & Valenzuela, Ernesto, 2006. "Do global trade distortions still harm developing country farmers ?," Policy Research Working Paper Series 3901, The World Bank. [Downloadable!]
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. [Downloadable!]

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