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World Bank: scraping allowance will decrease international cotton price

World Bank: scraping allowance will decrease international cotton price

Write: Ilar [2011-05-20]
The transfer-gene analysis report issued by World Bank consider that one the allowance for cotton s producing and export and cotton import tariff be scraped, annual global welfare will increase 0.283billion USD, accounting for 1/8% of the benefit of transfer-gene cotton. World Bank direct that allowance and tariff decrease international cotton price, therefore, many developing countries need import cotton is benefited greatly.

The analysis of World Bank shows that scraping cotton allowance will bring more 0.147billion USD to West-Middle Africa area, equal to the benefit brought by transfer-gene cotton technique. Scraping allowance will impel international average cotton price rise obviously and lead to Africa cotton increase production, increased by 1/3, cotton export increased by 50%. Comparatively, the cotton output and export of US and EU will be decreased by 25%, which make the percent of cotton export in middle-west Africa area accounting for global export value be increased from 12% to 17%. 52% to 72% in developing countries.
What should be directed is that the benefit brought by tariff scraping and agriculture product allowance is nearly 300 double of transfer-gene cotton, which is significant to cotton reform in Middle-West Africa-scraping tariff and allowance will increase local welfare to 0.147billion USD, 1/5 of benefit brought by global free trade to this area.
The speedy promoting transfer-gene cotton and cotton allowance scraping will play active mutual-movement to promote cotton producing and export in Middle-West Africa. As the effective supplement of Doha cotton trade and developing topic, At that time, average international cotton price will increased by 7.4% or 4.1% when just expand to plant transfer gene cotton.