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Agreement Ends U.S.- Brazil WTO Cotton Dispute

The U.S. and Brazil have signed an agreement resolving a decade-long trade dispute over cotton subsidies.

In a statement, the National Cotton Council (NCC) – which has been deeply involved in program negotiations between the countries and the World Trade Organization – expressed appreciation for the U.S. government’s successful efforts to conclude the dispute through negotiation, thereby avoiding possible trade retaliation.

NCC Chairman Wally Darneille reiterated that the U.S. cotton industry has undertaken extensive efforts to resolve this case, including comprehensive reform of cotton policy as part of the new farm law.

“The new U.S. farm bill includes several necessary changes to cotton policy and the GSM export credit program,” Darneille said. “When compared to previous programs, cotton policy is more market-oriented, with the primary safety net conveyed through insurance products that must be purchased by the producer.

“Officials from the Office of the U.S. Trade Representative and the Department of Agriculture are to be commended for reaching a comprehensive agreement that brings the dispute to a close,” Darneille stated. “With the conclusion of the case, the U.S. cotton industry can bring a renewed focus to the challenges that lay in front of us.”

 

 

Source – National Cotton Council

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