We examined the impacts of China's implementation of a sliding scale duty (SSD) system on the world cotton market. The analysis was based on a spatial equilibrium model of major importing and exporting regions that incorporates key features of China's SSD. The model solutions suggest that implementation of the SSD system improved market access for imports of cotton in China, which benefitted cotton processors, and adversely affected China's cotton producers. The Chinese market price of cotton decreased, imports increased, and domestic production declined. Furthermore, subsequent adjustments of the SSD system increased market access for cotton, which benefitted China cotton processors. These changes in China's cotton trade policy altered conditions in the world. [EconLit Citations: C600; F130; Q170]. C 2014 Wiley Periodicals, Inc.1 In this paper, we deal only with trade of cotton lint, not carded or combed cotton which is also referred to as "raw cotton," exclusive of cotton waste, cotton linters, cotton carded or combed, cotton yarns, cotton fabrics, cotton seeds, cottonseed oil, cakes.

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The purpose of this paper is to quantitatively analyze the trade effects of ensuring export disciplines through parallelism. A spatial equilibrium model is developed that includes export subsidies, exporting state trading enterprises （exporting STEs） , and imperfect competition. The model is applied to the international skim milk trade. The main results of the policy simulations are as follows. First, the skim milk trade has been distorted by European Union （EU） export subsidies and exporting STEs in New Zealand and Canada. Second, the distortion may be substantially corrected by ensuring export disciplines through parallelism. Third, the EU will continue to advocate parallelism in ongoing WTO agricultural negotiations with support from the United States and Japan, which receive the benefits from such successful negotiations.