Reforming the Cotton Trade Order? An Analysis of Cotton Subsidies and Implications for Sustainable Development

Abstract

Cotton is the most widely produced cash crop in the developing world. It supports the livelihoods of numerous households in these countries and occupies a significant position both economically and politically. However, in the recent past, this sector has experienced a pricing crisis mainly attributed to subsidies of developed nations. This article analyzes the effects of cotton subsidies (the most controversial agricultural commodity in the ongoing trade negotiations) on sustainable development, focusing on the impacts of U.S. subsidies on four West African countries. Given that these support systems have political motivations, the article briefly surveys political challenges to subsidy reforms. In conclusion, the article makes specific recommendations to the WTO and national governments to promote free trade, enhance economic efficiency, and support the global fight against poverty.