At the joint summer meeting of the Cotton Foundation and the American Cotton Producers in Nashville, TN, trade issues facing cotton is on the mind of many in the industry.The National Cotton Council’s senior vice president for Washington operations, John Maguire told the attendees of the joint meeting that the WTO compliance panel could hand down a ruling on damages in the Brazil-US cotton trade dispute as early as the end of the month. The industry is preparing itself for whatever the ruling may be. As Ron Smith writes in his story on the meeting for the Delta Farm Press, Maguire said the Council is preparing for a damages ruling that could range from small to large, as well as the press coverage that will come with the announcement.
While Step 2 and other features of the United States cotton policies and programs have been changed, Brazil still seeks over $2 billion in damages. Maguire believes that the US will not simply hand the money over to Brazil where it will end up in the hands of Brazilian farmers, but instead believes Brazil will “ask for cross retaliation and go after intellectual property rights.” If this is the case the cotton industry could find new allies on their side in the form of the motion picture industry and electronic manufacturers, as well as others.
Still, additional changes in legislation and the current program may be required. US cotton’s trade issues don’t end with Brazil. Africa continues to be an issue as the US cotton program is targeted as a means to reduce poverty in Africa. Africa continues to argue the US program unfairly impedes their farmers’ ability to compete on a global market. However, Maguire said House Agriculture Committee Chairman Collin Peterson said “Congress would not change the program.”
Maguire also highlighted problems with market access in China because of their regulatory standards. Concerns also exist over India and their new subsidies being “inconsistent with WTO commitments. For instance, the Indian government has purchased 11.7 million bales of cotton; sales to mills are being made at a discount; they are using an export subsidy; and they are denying access to their textile market.”
To read more about the trade issues facing US cotton in the Delta Farm Press story click here.
posted: 08/17/09
