US cotton industry concerned over Indian subsidy
Friday, 24 April 2009
WASHINGTON, Apr 23 (PTI): The US cotton industry has expressed its concern over subsidies being provided by the Indian Government to its cotton growing farmers, alleging it is in violation of the World Trade Organization's (WTO) norms.
Testifying before the US International Trade Commission hearing on "India: Effects of Tariffs and Non-Tariff Measures on US Agricultural Experts", the National Cotton Council-the central organisation of the US cotton industry-has sought the administration's help in this regard.
"The lack of transparency in the operation and scope of India's subsidy programme is a major impediment to trade. Despite India's membership in the WTO, it has repeatedly failed to notify its support levels to WTO," Gary Adams, of the National Cotton Council, said.
The special hearing was convened by the US International Trade Commission at the direction of the US Senate Committee on Finance in this regard. Adams urged the US Government that it should continue to press India to make these submissions.
"The export subsidy (to cotton farmers) programme will support India's internal prices while artificially increasing its competitiveness in world market," he argued.
"The addition of an export subsidy (to 3-5 per cent discount) allows India to increase this discount relative to their competitors," Adams said.
He alleged India has chosen to increase its own internal subsidy levels and expand export subsidised cotton. India has apparently never filed any export subsidy schedules as part of the Uruguay Round commitments within the WTO, he said.
Observing that US's cotton production has dropped significantly along with its growth, Adams said countries like India has stepped into the void, with increased production, exports and even increased subsidy tariff programmes.
The representative of the National Cotton Council said though India does not administer any quota restrictions on cotton imports, but does impose tariffs. Further, India maintains import tariffs on most cotton textile products.
Testifying before the US International Trade Commission hearing on "India: Effects of Tariffs and Non-Tariff Measures on US Agricultural Experts", the National Cotton Council-the central organisation of the US cotton industry-has sought the administration's help in this regard.
"The lack of transparency in the operation and scope of India's subsidy programme is a major impediment to trade. Despite India's membership in the WTO, it has repeatedly failed to notify its support levels to WTO," Gary Adams, of the National Cotton Council, said.
The special hearing was convened by the US International Trade Commission at the direction of the US Senate Committee on Finance in this regard. Adams urged the US Government that it should continue to press India to make these submissions.
"The export subsidy (to cotton farmers) programme will support India's internal prices while artificially increasing its competitiveness in world market," he argued.
"The addition of an export subsidy (to 3-5 per cent discount) allows India to increase this discount relative to their competitors," Adams said.
He alleged India has chosen to increase its own internal subsidy levels and expand export subsidised cotton. India has apparently never filed any export subsidy schedules as part of the Uruguay Round commitments within the WTO, he said.
Observing that US's cotton production has dropped significantly along with its growth, Adams said countries like India has stepped into the void, with increased production, exports and even increased subsidy tariff programmes.
The representative of the National Cotton Council said though India does not administer any quota restrictions on cotton imports, but does impose tariffs. Further, India maintains import tariffs on most cotton textile products.