Competition between the U.S. and West Africa in International Cotton Trade: A Focus on Import Demand in China

We estimate the demand for imported cotton in China and assess the competitiveness of cotton-exporting countries. Given the assertion that African cotton producers are ill affected by U.S. cotton subsidies, our focus is the price competition between the C4 countries (Benin, Burkina Faso, Chad and Mali) and United States in China. Demand estimates are used to project how U.S. prices affect China’s imports by country. In comparing demand projections, results show that the relationship between the United States and the C4 has more to do with how U.S. prices can affect global prices rather than any substitute or competitive relationship in the Chinese market.