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Outcome of the Nairobi WTO 10th Ministerial conference - Implications for the EAC cotton sector development

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  • Munu, Martin Luther
  • Shinyekwa, Isaac

Abstract

The paper examines the outcomes of the World Trade Organization (WTO) 10th Ministerial Conference (MC10) in Nairobi, what is termed the Nairobi package (WTO, 2015). Specifically, we investigate the implications of the package for the cotton sector development in the economy of the EAC as well as in the economies of member countries, with special focus on Uganda, Kenya and Tanzania. The paper employs a desk review and a quantitative approach to simulate the effects of removal of subsidies on cotton production, prices and export earnings in the EAC. The results indicate that the removal of subsidies would reduce cotton production among the top producing countries, reducing their export earnings while increasing both production and export earnings in the EAC. We conclude that EAC countries need to monitor the implementation of the decision on the elimination of export subsidies and increase cotton production to take advantage of these opportunities.

Suggested Citation

  • Munu, Martin Luther & Shinyekwa, Isaac, 2018. "Outcome of the Nairobi WTO 10th Ministerial conference - Implications for the EAC cotton sector development," Research Series 275662, Economic Policy Research Centre (EPRC).
    • Handle: RePEc:ags:eprcrs:275662
    DOI: 10.22004/ag.econ.275662
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    File URL: https://ageconsearch.umn.edu/record/275662/files/142%20Outcome%20of%20the%20Nairobi_WTO_10th_Ministrial_conference_Implications%20for%20the_EAC_cotton_sector_development.pdf
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    References listed on IDEAS

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    1. Jikun Huang & Scott Rozelle & Min Chang, 2004. "Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization," The World Bank Economic Review, World Bank, vol. 18(1), pages 59-84.
    2. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    3. Mr. Louis M. Goreux & Mr. Paul R Masson & Mr. Dhaneshwar Ghura & Mr. Ousmane Badiane, 2002. "Cotton Sector Strategies in West and Central Africa," IMF Working Papers 2002/173, International Monetary Fund.
    4. Mr. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 2003/110, International Monetary Fund.
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    Cited by:

    1. Xiaoxiao Li & Bo Wang & Lingyan Sun & Honghui Zhu & Ning Lv & Jiaqi Zhang, 2023. "The Transmission Effect Test of China’s Rotation Mechanism on the Cotton Reserve Market," Sustainability, MDPI, vol. 15(5), pages 1-17, February.

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    More about this item

    Keywords

    Crop Production/Industries; Farm Management; Institutional and Behavioral Economics; International Relations/Trade;
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