Research On Impacts Of Cotton Subsidy Policy In Main Cotton-Producing Countries On Chinese Cotton Trade

Cotton is an important economic crop in China. The development of cotton industry involves the source of income to100million cotton producing farmers as well as more than20million workers related to textile industry and then related to agricultural production and the development of the cotton textile industry, further more related to the stable development of the national economy. Although China is the largest cotton producer, cotton production accounts for the world, but the gap of cotton supply and demand is large, need to import large quantities of cotton to meet domestic demand, therefore, China have to import large quantities of cotton to satisfy domestic needs. In additional, with China’s cotton market completely liberalized, more and more threatened by cotton-production from other countries. Given a consideration of cotton production about the feebleness and the external characteristics, every major cotton production countries gives different degrees of subsidies to support policy for its cotton industry, because China has a short time to accession the WTO, the ability on the use of the rules of the agriculture agreement needs to be improved. The subsidy policy of Chinese cotton production is no perfect for other cotton production countries of the world, therefore, its subsidy policy on China has a very important reference significance. The present thesis based on research the cotton subsidies policy of the main cotton-production countries to find our deficiencies, furthermore, to establish and improve the cotton subsidy policies to provide reference and recommendations for our country, and made an empirical analysis of China’s cotton demand, China’s cotton demand and the gap will continue to become larger. In addition, the author still analysis the trade of China’s cotton, It’s not hard to find that the foreign cotton subsidies has an important impact on our cotton trade.