This paper is concerned with the empirical analysis of the international market for raw jute and jute manufactures. A dynamic disaggregated model is developed and estimated, and found satisfactory. The model is then used in simulation experiments to assess the impact, on both producing and consuming regions, of possible international agreements regarding the price of jute. It has been found that such agreements would typically have only limited benefits for the producing nations, as a result of the high and increasing elasticity of substitution between jute and synthetic substitutes.