September 18, 2019

WTO Cotton Ruling Anticipated

Categories: Doha / Trade /EU /Farm Bill

Jagdish Bhagwati and Arvind Panagariya opined in Saturday’s Wall Street Journal that, “The WTO talks between the G-4 nations — Brazil, India, the United States and the European Union — have collapsed yet again. This time, the only surprising twist was that U.S. Trade Representative Susan Schwab put the blame primarily on India and secondarily on Brazil…In truth, the breakdown of the Doha Round in Potsdam, Germany, had less to do with India and Brazil’s protectionism than with the U.S.’s paralyzing inability to respond to long-standing, world-wide demands for the reduction of its (and the EU’s) agricultural subsidies. Until we confront this central fact, success will remain beyond our grasp.”

I. WTO / Doha
II. EU Farm Policy
III. Farm Bill

I. WTO / Doha

A Reuters news article from Friday (via DTN, link requires subscription) reported that, “Domestic producers are waiting for a trade court ruling this month amid charges by anti-poverty groups that U.S. subsidies bankrupt farmers in developing countries by distorting market prices.”

The article noted that, “But a World Trade Organization panel is expected to decide by July 20 whether the United States, which accounts for 40 percent of world cotton exports, has done enough to reform government cotton subsidies after an earlier ruling found the supports depress prices for foreign producers.”