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Measuring the impacts of distortions in the European Union cotton sector: a partial equilibrium analysis using the ATPSM model framework

Gadanakis, Y., Baourakis, G. and Clapan, C. (2007) Measuring the impacts of distortions in the European Union cotton sector: a partial equilibrium analysis using the ATPSM model framework. AgEcon.

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Official URL: http://ageconsearch.umn.edu/handle/7285

Abstract/Summary

The “cotton issue” has been a topic of several academic discussions for trade policy analysts. However the design of trade and agricultural policy in the EU and the USA has become a politically sensitive matter throughout the last five years. This study utilizing the Agricultural Trade Policy Simulation Model (ATPSM) aims to gain insights into the global cotton market, to explain why domestic support for cotton has become an issue, to quantify the impact of the new EU agricultural policy on the cotton sector, and to measure the effect of eliminating support policies on production and trade. Results indicate that full trade liberalization would lead the four West African countries to better terms of trade with the EU. If tariff reduction follows the so-called Swiss formula, world prices would increase by 3.5%.

Item Type:Other
Divisions:Faculty of Life Sciences > School of Agriculture, Policy and Development > Economic and Social Sciences Division > Farm Management Unit
ID Code:38100
Uncontrolled Keywords:Cotton, European Union, West African Countries, Partial Equilibrium, Trade Policy
Publisher:AgEcon

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