WTO cotton move sends shock wave through farm talks

Reuters ^ | Wednesday, April 28, 2004 | Richard Waddington

[Einigkeit_Recht_Freiheit]

GENEVA — Brazil's emphatic win over the United States in a key trade ruling over cotton will send shock waves through world trade talks and embolden those demanding all farm subsidies be slashed, analysts said on Tuesday.

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, sources close to the ruling said.

The decision goes to the heart of the debate at troubled WTO negotiations to reform world farm trade, where angry poorer countries argue the massive subsidy schemes of their richer rivals depress prices and keep them out of lucrative markets.

"It is a good win for Brazil," said one trade source, who declined to be named but who had seen the ruling. "It strengthens the hands of the reformers in the negotiations. These subsidies have not only been shown to be hurting other countries, they have been called illegal by the WTO," he added.

The cotton ruling by a panel of WTO trade judges, which has not been made public, will be particularly welcomed by West African producers. They had been pleading for their crop to be given special consideration at the Geneva farm talks because of the heavy losses they have suffered.

[Einigkeit_Recht_Freiheit]

I see this as a one of the primary benifits of international organizations like the WTO. It is forcing the US to do the right thing in the face of special interest lobbies against which even right-minded politcians seem impotent.

Conervatives who support these subsidies are only doing it for the campaign contributions. Giving developing countries the opportunity to trade themelves into prosperity is the right way to help them. Otherwise, they are going to keep expecting handouts. We should also not forget the benefits to American consumers and tax payers.

[GeronL]

The WTO needs to go.

We can do the right thing without the socialists

[Cronos]

Well, I think we should stop giving aid and instead allow countries to trade their way into a decent way of life

[Arthur Wildfire! March]

"Well, I think we should stop giving aid and instead allow countries to trade their way into a decent way of life"

Interesting. But back to the cotton aid issue. Yeah, yeah, it's agriculture. So what? Who eats cotton? It's a material. It is not a matter of life and death the way food is. I would like to see cuts in all ag subsidies. In the case of non-food agriculture, I would like to see a complete elimination.

[Cronos]

I would like to see cuts in all ag subsidies. In the case of non-food agriculture, I would like to see a complete elimination.

Pretty true enough. Food cultivation can be done by the poorer nations so they can build themselves up out of poverty. We won't be dependent on any one nation either as we can have suppliers from S America, Africa, Australia and Asia.

[Einigkeit_Recht_Freiheit]

I agree with Cronos and AW!M.

I also don't see how you can call the WTO a socialst organization. That is just plain false. They almost always rule against tariffs and for the most free trade possible. Lefties hate the WTO. So, I guess this says something about where you are coming from.

[GeronL]

They rule against our tariffs. When Airbus and other industries are no longer government owned and government funded in Euro-land, then I will buy that.

[Cronos]

The Euros counter charge that we do support Boeing indirectly. We can raise the issue on Airbus -- that's what the WTO is for. And if we win, the Euros are obligated to stop any subsidies.

The media doesn't talk about our WINS at the WTO because it does not make good copy. A loss is more sensational

[Einigkeit_Recht_Freiheit]

Actually, there is a good book called "Kicking Down the Ladder" by Ha-Joon Chang that is really just a survey of how the now industrialized nations got to where they are.

In terms of policy it would appear that historically the US and Britain (Now the world's foremost proponents of free trade) were actually far more protectionist that France and Germany. Naturally, the smaller countries like Holland and Sweden were always quite open.

Japan became prosperous also by following the model of protecting its industries until they were competitive enought to compete internationally.

She also hints at the fact that the America civil war was probably more about the differences between the protectionist North and free trade South.

Anyway, the point is that I am really going to have to call you on your problem with the WTO. I was talking about tariffs the industrialized world has that is harmful to developing nations. You gave me a non-specific example (please cite the Airbus ruling you are talking about) of a dispute between the two wealthiest participants in the WTO.

I know you can do better.

By the way, here is the link to the book on Amazon; http://www.amazon.com/exec/obidos/tg/detail/-/1843310279/qid=1083145728/sr=1-2/ref=sr_1_2/104-9059709-5536769?v=glance&s=books

[CDHart]

"In the case of non-food agriculture, I would like to see a complete elimination."

The subsidy on milk just went up, but the farmers are getting an increase for a change, instead of the middlemen. Of course, now we have to pay more than $3.00 a gal.

Carolyn

[bvw]

Gee, a organization buys it's way in with a good judgement. The organization is still a problem as well as any authority WE might have foolishly granted it. Tariffs are not evil, nor subisdies.

Our WHOLE federal AG support is like a silo farm full of boll weevils. It distorts our internal markets more greviously than the international.

[sgtbono2002]

Stop subsidising the farms ,close them down,help the third world countries. Then lets cry some more about outsourcing.Put our farmers out of business they dont have labor Unions. Farmers are struggling now with Corporations taking over, .ets cut them off completely and then we can turn thos beautiful farms into residential communities.

[Einigkeit_Recht_Freiheit]

Ridiculous. The 25,000 farmers who grow cotton are feeding of the teet of the public cow. Concurrently the subsidies that American taxpayers provide these millionaires keeps some of the world's poorest from helping themselves.

With your promotion of trade barriers and scaremongering about outsourcing American jobs to the 3rd world you sound like John Kerry.

[sgtbono2002]

Hey we dont need no stinking farmers . Lets help the third world to some more American jobs. When do we start helping America? First we put the tobacco farmers out of business , now lets screw over the cotton guys. As long as we dont screw over the Tomato people and pout Heinz out of business who cares? Its pretty easy to se the same thing is basically happeneing here that happened to the manufacturing jobs. Send our jobs to the third world then cry because we have none.

[Einigkeit_Recht_Freiheit]

Amusing yes. Intelligent no.