Competitiveness of Sudan’s Gezira Produced Cotton with view of the Impact on Sudan’s WTO Accession

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Huda Osman Awad ELseid Elimam, Elimam
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University of Khartoum
Abstract: Economic viability of cotton production in Sudan has been constrained by institutional, economical and technical factors. Hence, this study aimed to assess the international competitiveness of cotton production in the Gezira Scheme. The study used secondary data of Barakat and Acala cultivars of cotton for the period 2000–2007 and applied the Policy Analysis Matrix (PAM) framework for the calculation of the financial and economic profitability and competitiveness levels of produced and exported cotton. The study used the sensitivity analyses approach to simulate the expected effect of WTO principles and rules of agreement on agriculture (WTO-AOA) on the comparative advantage of cotton of Sudan. The results showed that cotton was competitive in absolute and relative terms, and that the domestic resources cost had been efficiently used to produce and export the crop. The results also indicated that the government price policy had implicitly taxed cotton and was not successful in providing a tangible incentive for cotton production. With respect to the expected effect of (WTO-AOA) on comparative advantage of cotton of Sudan it was indicated that since the WTO does not permit export taxes and subsidies, Sudan can benefit from WTO Cotton Initiative, if approved, in supporting research and in producing high yielding varieties that compete in the world market. The study recommended, vertical expansion of cotton crop using a suitable technical package, monitor world prices to benefit from anticipated rising in export prices. Also, the study recommended removal of explicit and implicit taxes and the use of quality standards for controlling cotton stickiness to ensure access to relatively high prices for Sudan cotton in the world markets. English Abstract
166 pages
Competitiveness of Sudan’s Gezira Produced Cotton with view of the Impact on Sudan’s WTO Accession;Market Access Commitments;Export Subsidy Commitments;Financial Profitability;Domestic Resource Cost (DRC