Distortions of Sino-US and Sino-EU Safeguard Agreements: Effects on World Textile Markets

The effects of Sino‐US and Sino‐EU safeguard agreements on US, Chinese and world cotton and textile sectors are investigated using a partial equilibrium model. The effects are compared to a free trade scenario under the provisions of the Agreement on Textiles and Clothing. The two safeguard agreemen...

Full description

Saved in:
Bibliographic Details
Published in:China & world economy 2007-07, Vol.15 (4), p.78-88
Main Authors: Pan, Suwen, Welch, Mark, Mohanty, Samarendu, He, Xiurong
Format: Article
Language:English
Subjects:
China
Consumption
Cotton
Economic equilibrium
European Union
general equilibrium
International agreements
International political economy
International trade
partial equilibrium
Q11
Q17
Q28
safeguard restraints
textile
Textile industry
U.S.A
World economy
World Trade Organization
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The effects of Sino‐US and Sino‐EU safeguard agreements on US, Chinese and world cotton and textile sectors are investigated using a partial equilibrium model. The effects are compared to a free trade scenario under the provisions of the Agreement on Textiles and Clothing. The two safeguard agreements capping Chinese textile exports would decrease China's textile and apparel exports, production, and domestic consumption by an average 1.57, 0.63 and 0.32 percent, respectively. The safeguard agreements cause an increase in the US cotton textile price index and a slight decrease in US net textile imports and textile consumption. The agreements cause a decrease in the world cotton price and the quantity of cotton traded, but these trends reverse at safeguard expiration. The results generally support the view that the safeguard agreements forestall the effects of free trade in textiles and apparel rather than creating long lasting shifts in the textile trade.
ISSN:1671-2234
1749-124X
DOI:10.1111/j.1749-124X.2007.00077.x