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

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Listed:
  • Pan, Suwen
  • Welch, Mark
  • Mohanty, Samarendu
  • Fadiga, Mohamadou L.
  • Ethridge, Don E.

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.

Suggested Citation

  • Pan, Suwen & Welch, Mark & Mohanty, Samarendu & Fadiga, Mohamadou L. & Ethridge, Don E., 2005. "Chinese Tariff Rate Quota v.s. U.S. Subsidies: What Affects the World Cotton Market More?," 2005 Annual meeting, July 24-27, Providence, RI 19111, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19111
    DOI: 10.22004/ag.econ.19111
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    File URL: https://ageconsearch.umn.edu/record/19111/files/sp05pa03.pdf
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    1. James D. Gaisford & William A. Kerr, 2001. "Economic Analysis for International Trade Negotiations," Books, Edward Elgar Publishing, number 2243.
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    1. Fadiga, Mohamadou L. & Mohanty, Samarendu & Pan, Suwen & Welch, Mark, 2006. "U.S. Proposal for WTO Hong Kong Ministerial Conference: What's at Stake for Cotton Producers?," 2006 Annual meeting, July 23-26, Long Beach, CA 21273, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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