ABSTRACT
Research on the cotton market tends to focus on the distortions that industrialized countries cause in the international market due to the high level of subsidies given to this crop (Baffes, 2003, 2007; Gillson et al., 2004; Anderson and Martin, 2008; Shahin, 2008). Generally, the guilty parties are identified as the United States and the EU. Although the pre eminent role is played by China in this area (as the world’s main consumer, producer and importer), the effects produced by this country on the international cotton market tend to be underestimated. In absolute terms, the Chinese government subsidizes the sector offering the highest level of support worldwide since 2009-10 (ICTSD, 2013), even if, in relative terms (per unit of product), the EU is the largest subsidizer.
