Skip to comments.US loses cotton fight with Brazil
Posted on 03/03/2005 6:15:11 PM PST by nypokerface
The United States has lost the final round of a high-profile dispute with Brazil over US cotton subsidies.
A World Trade Organisation (WTO) appeals body on Thursday upheld an earlier ruling ordering the US to stop the payments to its farmers.
The organisation had found in its initial September ruling that the subsidies violated global trade rules.
Brazil said the US practice depressed world prices and hurt cotton producers both in Brazil and other countries.
The US will now have to bring its cotton subsidies, which wrongly include export credits for producers, in line with global trade rules.
In a statement, the WTO's Appellate Body, its top court, said the US policy was "inconsistent" with the global agreement on cotton, and that it should be brought "into conformity with its obligations".
The US had claimed in its appeal that the WTO judges had wrongly calculated the amount of subsidies that could be counted as trade-distorting under the organisation's definition.
The WTO's ruling comes as trade ministers from 30 states are meeting in Kenya to continue talks to try to reform global farm trade, a central part of the WTO's Doha round of free trade negotiations.
Although the US has lost its appeal, it remains to be seen how long it will take Washington to end its illegal subsidies.
The US has said that any change would need to be included in any overall Doha agreement.
No Doha declaration is expected at least until December, when trade ministers from around the world meet in Hong Kong.
India's chief WTO negotiator Gopal Pillai welcomed the organisation's decision against the US's cotton policy.
"The cotton subsidies which the US gives to its farmers distort trade in the market.
"Both subsistence farmers in Africa and Asia are not able to get a good price for their cotton."
Get the US out of the UN and the UN out of the US..........and the same goes for all their other global alphabet soup groups including the WTO, WHO, etc, etc, etc.
Killing our subsidies is about the only thing the WTO does that I agree with.
Did the US ever win anything in the WTO disputes?
It's the way our greedy "liberal" government keeps its populace under control.
I quit my farm 16 years ago because its gross income could not pay the taxes.
I would like to see how the UNdies would enforce that ruling...... since they dont have Juristiction Here.
Brazil now out produces the US in agriculture exports.
All the rain forest land that was clear cut logged was supposed to be worthless for even pasture. Well, thanks to US AG chemical companies, it is now the most productive crop land in the world, and they don't have just one growing season, for some farm goods, they sometimes have three annual crops for only one in the US.
The U.S. never should have joined that group in the first place. The free-trade-at-any-cost crowd stuck was wrong again.
I heard we win a little over 50% of the cases.
We actually have a winning record, although it's not much more than 50%.
Our farm subsidies are obscene and I wouldn't mind losing every one of those disputes.
And Congress will lay down like the dogs that they are and simply adhere to a world government organization.
The problem, then, is the taxes and regulations. Trying to overcome that with subsidies just perpetuates government control of the market, the old two wrongs don't make a right adage.
I am sorry you lost your farm but I would guess that without the high taxes and regressive regulations you would have prospered.
Yeah, not a bad decision, if I must say so. I don't agree with the procedure, but the outcome is good.
Subsidies hurt us more than anyone else. If you can make it w/o the Gov. dole, then find another business. This is Evolution in micro really.
I don't know that "prospered" is the right word, but at least it would have supported us. That farm was the total source of support for my family the first 50 years of my life.
It's not the only problem, however.
In 1930, the wheat we produced sold for about $2/ bushel. Today it is $3.20/ bushel. Less than a 50% increase.
Taxes, however, in 1930, were under $50/ year. The last year I paid taxes I paid $12,500. The land will only raise so much wheat and there are no guarantees that you will get a crop every year.
I know farming is a tough business. However, some of the most satisfied people I have ever known have been those few, that I personally knew, who were able to scratch a living out of their own soil.
Don't you just love soveriegnty??? I don't support subsidies of anything but this is crappy.