King Cotton’s Subsidies under Attack in the WTO as Agricultural Negotiations

[JohnWxy]

http://www.americasnet.net/Commentators/John_Curry/curry_47.pdf


The World Trade Organization (WTO) focused attention on the large subsidies the US
government gives to cotton farmers by rejecting the US claim that they do not impact
cotton production. The interim ruling accepted Brazil’s argument that US subsidies
exceed the internationally negotiated limit and thereby lose the protection of the WTO
agricultural agreement’s “peace clause,” which has shielded them from challenges up to
now. The ruling also found that Brazilian cotton farmers had been harmed by the US
subsidies, including export credit guarantees. The Bush administration said it will appeal
the WTO interim panel decision unless the final decision, due to be announced on June
18, differs from the interim ruling. Informed observers say this is unlikely.
The US Government Position


The US gave cotton farmers $12.5 billion from mid 1999 to mid 2003 and these farmers produced $13.9 billion worth of cotton. The 2001-2002 cotton crop was worth $3.08 billion and the US paid subsidies
of about $4 billion. Brazil charges that the seven different subsidies given to

LETS'S See that totals to $16.5 Billion to enable cotton farmers (2,500 of them got 78% of the money) to be competitive on international markets.

[Joanne98]

1. Cotton. What states does that grow in? Alabama? Tennessee?

Maybe those states that are trying to bust the auto unions.

Let's CUT THEM OFF NEXT YEAR! THEY MAKE TOO MUCH MONEY!

[Tumbulu]

2. CA, AZ, NM, TX, OK, and the SE US

The money mainly goes to buy ag chemicals as if you do the math you can see that there is very little profit. It pays for fertilizers and pesticides and storage facilities. It funds agribusiness all over the southern US, mostly the western states.

Cotton grows on land that nothing else will grow on. The farmers who grow more valuable crops call it "poverty weed".

[JohnWxy]

3. Actually Texas appears to be the leading state in terms of cotton production. Alabama comes in

about eighth!

http://www.cottonusa.org/directories/BuyersGuide.cfm?ItemNumber=1545&sn.ItemNumber=1080&tn.ItemNumber=1105

WTo found us in violation of free trade practices a few years ago. bush admin has been ignoring them. The big cotton producers are mostly corporate farms.

[CanonRay]

4. Good thing it doesn't grow in Michigan or there wouldn't be any subsidy.