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U.S. Proposal for WTO Hong Kong Ministerial Conference: What's at Stake for Cotton Producers? AgEcon
Fadiga, Mohamadou L.; Mohanty, Samarendu; Pan, Suwen; Welch, Mark.
This study analyzed the cost to U.S. cotton producers of two policy alternatives under which the U.S. seeks to cut its total AMS payments for cotton by 60%. We considered two scenarios; the U.S. decides to act unilaterally versus conducting the policy initiative along with multilateral tariff and subsidy eliminations from the Rest of the World. The study found a 12% cut in target price and 8% cut in loan rate are necessary to reach the 60% AMS targeted reduction under the unilateral scenario. In that regards, U.S. net farm income decreases considerably despite an appreciation of U.S. farm price. Under a multilateral trade liberalization from the Rest of the World, a 9% cut in the loan rate and 4% in loan rate are enough to reach the AMS reduction...
Tipo: Conference Paper or Presentation Palavras-chave: United States; Hong Kong; Cotton subsidies; Tariff; Net farm income; International Relations/Trade; Q11; Q17.
Ano: 2006 URL: http://purl.umn.edu/21273
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