US Subsidies May Force Brazil to Import Cotton

As Brasilia expected, the United States will appeal a World Trade Organization decision which ruled that its cotton subsidies were illegal.

Brasilia submitted a complaint on June 18 which stated that US cotton subsidies were detrimental to Brazilian cotton production and competitivity.

The complaint pointed out that because of the subsidies the US, the world’s second biggest producer, is the world leader in cotton exports.

US Department of Agriculture data shows that over the last four years some 25,000 US cotton growers have been receiving $0.89 per each dollar worth of cotton they produce.

In other words, American cotton farmers were getting a dollar of income at a price of only $0.11.

The result is overproduction by the US, which depresses world prices, making it difficult for others to compete.

According to the National Agriculture Confederation, the problem has become so serious in Brazil, with cotton production declining sharply, that there is a chance that soon it will have to be imported.

Agência Brasil
Translator: Allen Bennett


  • Show Comments (0)

Your email address will not be published.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.


You May Also Like

Free Trade Agreement Approaches Israel to Brazil and Mercosur

Israel and Mercosur, which comprises Brazil, Argentina, Uruguay and Paraguay plus Venezuela, will sign ...

Despite Claims to the Contrary Gays Are Not Endangered in Brazil

The other day a Brazilian friend asked me if I had noticed that, within ...

For Bush to Read in Bed

Report from Brazil, the most democratic country on the planet. A few modest suggestions ...

Lula Calls on Africa to Join Brazil to Fight the Rich

The joint effort of Brazil and African countries in the World Trade Organization (WTO), ...

Industry Gets Lion Share of Brazil’s Development Bank

The Brazilian Development Bank (BNDES) spent US$ 3.7 billion in loans in the first ...

Brazil Says Au Revoir to France with Good Memories and Money

Since 1985 France has been spotlighting certain countries and giving them year-long exposure. This ...

Brazil’s Asymmetrical Challenges & the World’s Covetous Eyes on the Amazon

There are three types of people, a saying goes: those who make things happen, ...

Lula Is No Friend of Ours Say Brazilian Indians

Around 200 indigenous leaders from 16 peoples from all of Brazil met September 15 ...

Brazil Ready to Pardon Debts As Long As Someone Else Pays

Five Latin American countries seek to have their debts with the Interamerican Development Bank ...

There Is No Social Justice Without Education, Says Bush in Brazil

In his final address in Brazil, Sunday, November 6, US president George W. Bush ...