|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    25th of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

All Financial News feed All Financial News

Washington moves to curtail cotton subsidies

Bookmark and Share

by Brian Turner
Washington moves to curtail cotton subsidies

The Bush administration said on Tuesday that it would advance a proposal to Congress to eliminate a subsidy program that had paid millers and exporters of cotton over $2.4 billion over the past decade.

The US is taking this action after the World Trade Organization said that he program is against world trade rules and that it has kept cotton prices low worldwide.

That has hurt cotton farmers in Brazil and the rest of the developing world.

The move comes a week after the European Union announced that it would cut sugar subsidies after Brazil brought a similar case before the WTO.

The US undersecretary of agriculture, J. B. Penn, said that the move by the administration was meant to signal to the world that the US was prepared to play by the rules set by the WTO and that other nations should also do so.

However the US Congress must make the actual changes to the subsidy program in question, which is certain to be opposed by the cotton industry and agricultural interests which have been quite successful in the past at making sure farm subsidies are maintained.

Brazil called the proposal “a step in the right direction”, but added that the US must comply with the whole WTO ruling.

Subsidies to farmers with cotton to be sold domestically in the US would not be affected by the proposed legislation.

Discuss this in the Finance Markets forums

Story link: Washington moves to curtail cotton subsidies

News posted: July 6, 2005

Financial Services:

Related financial stories to: Washington moves to curtail cotton subsidies:
Previous: «
Next: »

Visited 1071 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.