The aim of this term paper is to examine the magnitude of cotton subsidies in developed countries and their impact on developing and least-developed countries as well as to inquire the effectiveness of the WTO in promoting free trade among its member states, especially with regards to the cotton sector. The WTO does currently not have a specific definition or certain criteria that classify a country as ‘developed’ or ‘developing’; WTO members rather decide it for themselves. This classification can, however, be challenged by other members. Concerning a definition for least-developed countries, the WTO employs the classification of the United Nations. According to the UN, LDCs are countries that “are deemed highly disadvantaged in their development process, for structural, historical and also geographical reasons” (UNCTAD, 2017). There are currently 48 countries classified as an LDC, 36 of which are WTO members. Due to the scale of the paper, only subsidies in the USA and the European Union and their economic and social consequences for the Cotton-4 will be considered.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- International Trade
- Globalisation and Trade Liberalisation
- The Role of the World Trade Organization
- Development of International Agricultural Trade
- Agricultural Protectionism in Developed Countries
- Trade Liberalisation Efforts
- Africa's "White Gold" and the Cotton-4
- Current Cotton Production and Trade
- The Role of the Cotton-4
- Problems Faced by African Cotton Farmers
- Cotton Subsidies in the US and the EU
- Implications on the Cotton-4
- Economic Implications
- Social Implications
- WTO Agricultural Negotiations and their Outcomes
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the economic and social implications of cotton subsidies in the US and the EU on the Cotton-4 countries. It analyzes the impact of these subsidies on African cotton farmers and the broader global cotton market, drawing upon international trade theory and the role of the World Trade Organization (WTO).
- Impact of agricultural protectionism on developing countries
- The role of the WTO in regulating international agricultural trade
- Economic and social implications of cotton subsidies on African cotton farmers
- Analysis of trade liberalization efforts and their impact on the cotton sector
- The future of agricultural subsidies and their role in global development
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter sets the context for the paper by introducing the topic of agricultural subsidies and their implications for the global cotton market. It highlights the importance of cotton to the economies of African countries and the challenges faced by cotton farmers in the face of subsidized competition from developed nations.
- International Trade: This chapter discusses the theoretical framework of international trade, focusing on globalization and trade liberalization. It examines the role of the WTO in regulating international trade and promoting free trade. The chapter also highlights the challenges faced by developing countries in achieving fair trade practices within the global trade system.
- Development of International Agricultural Trade: This chapter explores the history of agricultural trade and the evolution of protectionist measures employed by developed countries. It discusses the different types of agricultural subsidies and their impact on global agricultural markets. The chapter also reviews the progress made in trade liberalization efforts through the WTO.
- Africa's "White Gold" and the Cotton-4: This chapter focuses on the cotton sector in Africa and the role played by the Cotton-4 countries (Benin, Burkina Faso, Chad, and Mali). It examines the current state of cotton production and trade in these countries and highlights their importance in the global cotton market.
- Problems Faced by African Cotton Farmers: This chapter delves into the specific challenges faced by African cotton farmers, particularly in relation to cotton subsidies in the US and the EU. It analyzes the economic and social implications of these subsidies on the Cotton-4, examining their impact on production, incomes, and livelihoods. The chapter also discusses the WTO agricultural negotiations and their outcomes, focusing on the efforts to reduce and eliminate trade-distorting subsidies.
Schlüsselwörter (Keywords)
This paper explores key topics such as agricultural subsidies, international trade, trade liberalization, cotton production, global cotton market, Cotton-4, WTO agricultural negotiations, economic implications, social implications, and development.
- Citar trabajo
- Laura Schmiedl (Autor), 2017, Agricultural Subsidies in Industrialised Countries, Múnich, GRIN Verlag, https://www.grin.com/document/956855
