US’s New Farm Bill with Cotton Subsidies Leads Brazil to Retaliate

Cotton According to Brazilian ambassador Roberto Azevedo, Brazil’s permanent representative at the World Trade Organization (WTO), “Brazil does not want to retaliate due to the United States cotton subsidies, but may be forced to do so.” 

The ambassador’s comment followed approval by the US House of Representatives of a new Farm Bill (the present bill expires in September) that maintains cotton subsidies and other farmer benefits that have been judged illegal by the WTO.

American cotton subsidies, which have been part of US legislation since 1934, are actually scheduled to increase in the new Farm Bill. For that reason, ambassador Azevedo expressed concern, calling the situation “uneasy.”

He said there was no convincing justification for American congressmen to have approved a bill that was even more harmful to Brazilian cotton growers than the former bill.

“Farming should be based on market forces, not government subsidies,” said Azevedo, as he pointed out that the new Farm Bill “distorts market competition.”

The ambassador reported that Brazil and the United States have been discussing the cotton subsidy controversy and the new Farm Bill in an effort to avoid Brazilian retaliation under provisions of a direct compensation ruling (that allows cross retaliation) by the WTO dispute settlement panel in 2004.

At the same time, under a framework agreement, the United States has been making monthly payments of US$ 12.275 million to the Brazilian Cotton Institute (IBA), as part of reparation payments to Brazilian cotton growers for losses due to US subsidies.

ABr

Tags:

Ads

You May Also Like

Hollywood Gets Alive With Beth Carvalho and the Sounds of Brazil

The last weekend in June the Ford Amphitheatre, in Hollywood, California, resonates with the ...

Romancing the Skies

Brazil has had to pursue their space dreams alone and against the opposition from ...

By Advertising Reading, Brazil Is Trying to Sell Meat to Vegetarians

Finally, a Brazilian administration has perceived that it must promote reading in Brazil with ...

Plenty of Dollar and Hefty Surplus Make Brazil Hum Along

According to Brazilian Minister of Finance, Guido Mantega, Brazil has been able to weather ...

Brazil’s Machinery Industry Fell 18% in 2009, But There Are Signs of Recovery

Brazil’s capital goods industry posted revenues of 64 billion Brazilian reais (US$ 34.8 billion) ...

My turn

An old-time resident of Diadema tell his side of the story. By Elma Lia ...

Rapidinhas

Fashion Crème de la crème Isabela Rosselini‘s 13-year reign as Lancôme’s face has ended. ...

Brazilian Industry Calls Chinese Competition Unfair

The Brazilian heavy equipment industry complained to the Minister of Development, Industry, and Foreign ...

World Leaders Took Humility Tea, Says Brazil’s Lula After G-20 Summit

Brazilian President Luiz Inácio Lula da Silva went back to Brazil after two days ...

Brazil Coffee Exports Reach Record US$ 3.8 Bi in 12 Months, a 25% Growth

Coffee exports from Brazil totaled US$ 2.72 billion from January to September, representing an ...