• Categories
  • Archives

Brazil Wants US Condemned for Cotton Subsidy

Brazilian cotton producers are waiting for the World Trade Organization (WTO) to release its report, in the next few days, on the panel convened last year by Brazil in opposition to the subsidies granted by the United States to American cotton growers.

The Executive Director of the Brazilian Association of Cotton Producers (Abrapa), Hélio Tollini, said he is optimistic about prospects for dismantling the protective mechanisms that have made it possible for the United States to gain control of 40 percent of the world cotton market.

Tollini declared that he thinks the United States, which, he claims, needs to revise its budget, may even abolish the subsidies prior to the end of the period within which it has the right to appeal following the publication of the report.


The United States spends US$ 3.5 billion annually on subsidies to cotton growers. In the panel, which began in March, 2003, Brazil challenged six domestic assistance and credit programs maintained by the American government.


The WTO rendered an opinion favorable to Brazil in April. If, however, the United States decides to appeal, the final ruling will only be issued in 2005.

Assuming that the WTO confirms its preliminary judgment””which is the most likely result, according to the directors of the Association””the United States will have a deadline for eliminating the subsidies.


“In the case of outside subsidies, this period is practically instantaneous, but, domestically, the process is slower, because it depends upon changes in the law,” Tollini explained.


Once this happens, the American share of the world market will drop to around 20 percent, Abrapa estimates. The other 20 percent can be supplied by Brazil, Australia, Uzbekistan, and other cotton-growing countries.

Brazil, which is expected to export 450 thousand tons of cotton this year, can assume third place in the world ranking of cotton exporters, in the estimate of the Abrapa director.


Production in the last growing year (2003/2004) amounted to 1.250 million tons, 48.1 percent more than in the previous harvest.


With crop management programs and heavy investments in research (conducted by Embrapa, the Brazilian Agricultural Research Company), cotton production and productivity in Brazil have been rising each year.

Agência Brasil
Reporter: Lana Cristina
Translator: David Silberstein



Tags:

  • Show Comments (1)

  • MRB

    It’s time Brazil cross-retaliated the US?
    The US says “OK, we’ve been punished by the WTO. SO what?” It’s time Brazil said “we won’t pay you any more royalties for medical patents we shouldn’t be paying first place”. As quick as a rat the US will stop breaking the WTO’s regulations.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Exports to Arabs Grow Surprising 24.5%

Brazilian exports to the Arab countries generated a surprise for the second consecutive month. ...

From Sacred to Samba

Investors have been pulling their money out of the Brazilian market at a frantic ...

Odd Bedfellows

Looking at the range of Lula’s backers one cannot help recalling Robert Browning’s poem ...

Brazil Sends Food to Flood Victims in Bolivia

Brazilian President Luiz Inácio Lula da Silva ordered that humanitarian aid be sent to ...

Another Confirmation of Brazil Government’s Graft Scandal

A former BrasÀ­lia (capital of Brazil) deputy governor revealed it was known that members ...

Concrete Jungle

"CINEMA BRASIL" comes to San Diego By Cine ’99: The San Diego Latino Film ...

In Brazil, Buggies Never Go Out of Style

The buggies, those little hoodless cars with fiberglass bodies and large back wheels, have ...

In Beijing, Brazilian Vice President Urges Reforms in Brazil

On the fourth day of his official visit to China, Brazilian Vice President José ...

Despite US’s Stand Brazil Warns It Won’t Recognize Honduras’ New President

The Brazilian minister of Foreign Affairs, Celso Amorim, reaffirmed on Thursday divergences with the ...

The Land of the Sphinx Is Luring Brazilian Soccer Players

Rogério Dantas, a 23-year-old native of the southeastern Brazilian state of São Paulo, arrived ...