FAO TRADE POLICY TECHNICAL NOTES - No. 1. COTTON: impact of support policies on developing countries - a guide to contemporary analysis
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Subsidies maintain cotton production at otherwise unprofitable levels in industrialized countries Excess supply induced by domestic subsidies has a depressing effect on the world market price Subsidy reductions will reduce poverty in developing producing countries Estimates of the magnitude of the impact of subsidies on the global pattern of cotton production, world market prices and cotton trade vary due to the range of assumptions used by different studies