US 'disappointed' as WTO rules against cotton subsidies
Wednesday, 17 October 2007
GENEVA, Oct 16 (AFP): The United States said yesterday it was "very disappointed" with a ruling by the World Trade Organisation (WTO) ruling that its subsidies to cotton farmers breached global trade rules.
The finding confirms a preliminary ruling in July in favour of Brazil, which initially brought the complaint in 2005, and paves the way for sanctions.
Brazil believes its cotton producers are being harmed by government subsidies to US own cotton farmers.
The WTO ruled in 2005 that this aid amounted to illegal assistance that skewed international trade by undermining global cotton prices. Washington last year gave assurances it had ended the programme.
However, Brazil maintained that measures taken by the United States had not gone far enough and called for the WTO to investigate.
The WTO panel "found that changes made by the United States were insufficient to bring the challenged measures-certain support payments under the 2002 farm bill and export credit guarantees-into conformity with US WTO obligations," a US official said.
"We are very disappointed with these results. We continue to believe that payments and export credit guarantees under our programmes are now fully consistent with our WTO obligations," the official added.
The finding confirms a preliminary ruling in July in favour of Brazil, which initially brought the complaint in 2005, and paves the way for sanctions.
Brazil believes its cotton producers are being harmed by government subsidies to US own cotton farmers.
The WTO ruled in 2005 that this aid amounted to illegal assistance that skewed international trade by undermining global cotton prices. Washington last year gave assurances it had ended the programme.
However, Brazil maintained that measures taken by the United States had not gone far enough and called for the WTO to investigate.
The WTO panel "found that changes made by the United States were insufficient to bring the challenged measures-certain support payments under the 2002 farm bill and export credit guarantees-into conformity with US WTO obligations," a US official said.
"We are very disappointed with these results. We continue to believe that payments and export credit guarantees under our programmes are now fully consistent with our WTO obligations," the official added.