The Geneva-based World Trade Organization (WTO), in a confidential decision, told Washington to halt much of the lavish aid it gives the country's some 25,000 cotton farmers, ruling it illegal...
ENN article
Thanks to the firm stance of countries who are tired of being the lackies in world trade, specifically the efforts of Brazil and several African nations, the WTO appears to be coming around to some semblance of usefulness. On the other hand, I suppose we can simply withdraw our "membership".
At the WTO, trade sources said Brazil had successfully argued that the United States had gone above agreed limits for cotton subsidies and that this had led to over-supply which in turn had helped depress world cotton prices.
"They did not go into all the aspects of the Brazilian case, they focused on the price argument," one trade source said.
It was the first time that a developing country had challenged the crop support programs of a big trade power and analysts and diplomats said that other cases could follow. The European Union, another big user of farm subsidies, is already under attack from Brazil, Australia, and Thailand, all major sugar exporters, over the massive assistance it gives its sugar beet growers in a case that could be decided this summer.
...Trade sources said many U.S. and E.U. crops, including soybeans, wheat, and rice as well as beef and dairy produce, were possible future targets for WTO challenges.
"People are looking at other cases," said Argentina's ambassador to the WTO, Alfredo Chiaradia. "We might move on dairy."
But the United States has said it will appeal the WTO verdict, if, as is usually the case, the ruling is confirmed in a final decision to be made public around June 18.
"They did not go into all the aspects of the Brazilian case, they focused on the price argument," one trade source said.
It was the first time that a developing country had challenged the crop support programs of a big trade power and analysts and diplomats said that other cases could follow. The European Union, another big user of farm subsidies, is already under attack from Brazil, Australia, and Thailand, all major sugar exporters, over the massive assistance it gives its sugar beet growers in a case that could be decided this summer.
...Trade sources said many U.S. and E.U. crops, including soybeans, wheat, and rice as well as beef and dairy produce, were possible future targets for WTO challenges.
"People are looking at other cases," said Argentina's ambassador to the WTO, Alfredo Chiaradia. "We might move on dairy."
But the United States has said it will appeal the WTO verdict, if, as is usually the case, the ruling is confirmed in a final decision to be made public around June 18.
Cotton kings have a lot of pull still in Texas and California, so this should be interesting, but when they get to Florida's sugar business, I imagine the big guns will come out.
....but hey, do what you want....you will anyway.
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