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U.S. will fight WTO on cotton
WASHINGTON (DTN)--A senior U.S. trade official said the Bush administration would fight the World Trade Organization panel's decision on the U.S. cotton program. If the final report remains the same as the initial ruling, it would be appealed.
A WTO dispute-resolution panel has ruled U.S. cotton subsidies have hurt the interests of producers in other countries. The case was brought by Brazil and other countries. The decision is confidential and open to comment from the affected parties.
It is scheduled for release on June 18, but Brazilian and U.S. officials said the case went mostly in the favor of the Brazilian argument.
Allen Johnson, the chief U.S. agriculture negotiator, said the appeals process would most likely take until the end of the year.
"There is no immediate effect on our farm programs," he said.
White House Press Secretary Scott McClellan said U.S. farm programs are in compliance with world commitments.
"We believe that United States farm programs were designed to be and are fully consistent with our WTO obligations," he said. "(Officials) will be working closely with members of Congress and the agriculture community as we move forward. And we will be defending U.S. agricultural interests in every form we need to and have no intention of unilaterally taking steps to disarm when it comes to this."
During a conference call, Johnson said the case may have some implications in the Doha trade round, but the United States considers market access a key goal and is still looking for what other countries are offering to give up in the trade negotiations.
U.S. officials believe "the immediate impact should be encouraging the WTO to get back to work," he said.
Since the failed WTO ministerial meeting in Cancun in September, Johnson said, the United States changed its offer with a willingness to look at product-specific caps, developing countries' concerns, safeguards and elimination of the subsidy element of export credits.
"We have made a number of moves trying to move this process forward. We can't do it by ourselves," he said. "Others are going to have to contribute to this process."
Analysts said in a Reuters report from WTO headquarters in Geneva the decision is likely to embolden developing countries to file more suits.
"People are looking at other cases," said Alfredo Chiaradia in the Reuters report. "We might move on dairy."
Officials from Oxfam, the British-based anti-poverty charity that has encouraged developing countries to challenge trade policies, said in a release the decision will help poor people worldwide.
"This would be a huge victory, not just for Brazil, but particularly for 10 million poor African farmers whose livelihoods have been crippled by unfair competition," the release said.
National Cotton Council CEO Mark Lange said he was disappointed with the decision.
"It's unfortunate, and, we believe, incorrect," he said.
Date: 4/29/04
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