Publication

The WTO Doha Round could have a significant positive impact on world cotton prices and contribute to the expansion of cotton production and exports in developing countries. However, the likelihood of such an outcome is highly dependent on the depth of the subsidy reductions adopted by WTO members. The poor record of internal policy reforms in key subsidizing countries and the failure of the US to comply with recommendations from the WTO Dispute Settlement Body (DSB) highlight the importance of multilateral trade negotiations in addressing the profound distortions that characterize the world cotton market.