FarmPolicy

July 16, 2019

Brazil’s WTO Cotton Case

Dow Jones writer Tom Sellen reported on Friday that, “The National Cotton Council [NCC] said Friday that if press reports are true that the World Trade Organization has largely ruled against the U.S. in a claim by Brazil that Washington has failed to eliminate illegal subsidies to cotton growers, the finding would be ‘contrary to the facts in the world cotton market’ and ‘unsupportable.’” (Click here to view the entire NCC release).

Mr. Sellen added that, “The U.S. has already taken actions to scrap subsidies by eliminating the government’s Step 2 program, which has had a significant impact on U.S. cotton and cotton producers, the NCC said in a press release.

“As a result, U.S. cotton planted acreage is down 28% in 2007, U.S. exports have declined significantly and production is predicted to be only around 17 million bales, the lowest since 2002.

“‘It cannot be credibly argued that any payments under domestic support programs are causing any country serious prejudice in 2007 – the first year of their operation without the Step 2 program,’ the NCC said.”

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