Cotton and the WTO - What has been Achieved

Released on = April 17, 2007, 4:36 am

Press Release Author = Namrata

Industry = Small Business

Press Release Summary = The issue of cotton subsidies in developed countries is one
of the most contentious and challenging ones for the World Trade Organisation (WTO).


Press Release Body = Cotton and the WTO: What has been Achieved?

The issue of cotton subsidies in developed countries is one of the most contentious
and challenging ones for the World Trade Organisation (WTO). In the past the WTO has
maintained that cotton should not be considered separately from other agricultural
products, and the USA has supported this stance. The C-4 group was aided in its
campaign by a legal challenge launched by Brazil against US cotton support policies
in 2002. Brazil's challenge helped to raise the profile of the C-4 group's campaign
and to secure worldwide coverage and widespread sympathy for the plight of the C-4
countries. All agricultural export subsidies will be eliminated by 2013 and domestic
subsidies gradually reduced. In the case of cotton, developed countries are to
eliminate export subsidies in 2006. Also, they will grant duty-free and quota-free
access to exports from least developed countries (LDCs), although no timetable for
this has been agreed. Achieving them could therefore prove challenging.

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