• 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

Lula Now Has to Decide Whether This Italian is a Freedom Fighter or a Murder

The Italian prime minister Silvio Berlusconi arrives in Brasília on March 8. It is ...

Despite Cattle Disease Brazilian Beef Exports Grow 26% to Another Record Year

Brazilian beef exports should yield US$ 3.1 billion, up to the end of December ...

Brazilian Authorities Disregard Own Decision and Reopen Forest for Exploration

On September 5, 2005, leaders of the Organization of Indigenous Peoples of Acre, South ...

Brazil Dares Chancellors to Be Daring

Brazil’s Minister of Foreign Relations, Celso Amorim opened the Meeting of Chancellors of the ...

This Brazilian Furniture Maker Uses Only Certified Afforestation Wood

Furniture sector company Taedda, from the southern Brazilian state of Paraná, has traced the ...

Brazil’s Finance Minister on US Debt: ‘Not Finding a Solution Is Madness’

While participating at the 38th assembly of the Economic and Social Development Council (“CDES”), ...

Brazilian Congress Probes Corruption Charges in the Postal Service

Brazil’s Post Office CPI (Congressional Investigative Commission), which is investigating charges of corruption in ...

In Brazil and Mercosur Majority Don’t Like Bush and 70% Call U.S. Imperialist

In four of Mercosur country members’ capitals (BrasÀ­lia, Buenos Aires, Montevideo, Santiago) over 50% ...

Brazil Finds Cheaper Way to Make Asphalt

The Military Engineering Institute (IME), an army university in the city of Rio de ...