U.S. loses $3B cotton subsidy dispute

[Judi Lynn]

Source: CNN/AP

U.S. loses $3B cotton subsidy dispute
In final appeal of dispute with Brazil, WTO rules that payments to U.S. cotton growers violates global agreements.
June 2, 2008: 1:34 PM EDT

GENEVA (AP) -- The United States lost its final appeal Monday in a billion-dollar trade dispute with Brazil over subsidies to U.S. cotton growers.

A World Trade Organization appeals panel reversed parts of an earlier ruling made last December, but found that on the whole, the U.S. payments breach global commerce agreements.

Brazil can now ask the WTO to authorize retaliatory trade sanctions on the U.S. that could run into the billions of dollars until Washington scraps the payments.

U.S. lawmakers voted last month to overturn a veto by President Bush and force through a farm bill worth $290 billion that will largely maintain the cotton payments for the next five years.




Read more: http://money.cnn.com/2008/06/02/news/international/bc.apfn.wto.us.cotton.ap/index.htm?section=money_news_international

[Tashca]

1. I wonder if this will impact future farm subsidies?

Is this the beginning of the end of subsidies for commodity crops in the U.S. and Europe?
Or will it have no impact?
I don't really know much about this, but reading the article makes me wonder if this will put pressure on reducing subsidies.

[Judi Lynn]

2. WTO rejects US appeal for cotton subsidies

WTO rejects US appeal for cotton subsidies
Web posted at: 6/3/2008 3:29:14
Source ::: Agencies

GENEVA • The World Trade Organisation yesterday rejected an appeal by the United States over its cotton subsidies, paving the way for Brazil, which lodged the original complaint, to demand sanctions.

The WTO said an appeal panel upheld the ruling handed down last December that found that the US breached trade rules over its subsidies for cotton farmers.

The US “acts inconsistently with its obligations” as its subsidies for cotton producers is “significant price suppression” that constitutes “serious prejudice” to Brazil, the panel found.

Washington had failed to implement earlier WTO findings against US agricultural support, including for cotton farmers, the WTO said.

Last February, Washington had appealed against the decision.

The ruling paves the way for Brazil to demand sanctions.

In 2005, the Brazilian government suggested it would seek to impose one billion dollars in sanctions on the world’s biggest economy.

More:
http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=market+news&month=June2008&file=Business_News2008060332914.xml

[alcibiades_mystery]

3. Good

You want a free market motherfuckers? You should get it. No exceptions!

Let's see how the farmers like their capitalism.

[Spouting Horn]

5. Farmers hate Capitalism

when it comes to them.

Agribusiness collects billions in Corporate Welfare every year.

They're almost as bad as these billionaire professional sports franchise owners (like Jeffrey Loria) who constantly beg for public financing of their private place of business.

[Judi Lynn]

4. Brazil hails victory over U.S. in WTO cotton controversy

Brazil hails victory over U.S. in WTO cotton controversy


www.chinaview.cn 2008-06-03 10:45:54

RIO DE JANEIRO, June 2 (Xinhua) -- Brazil expressed on Monday its satisfaction with a ruling of the appeals court of the World Trade Organization (WTO) on U.S. cotton subsidies, which Brazil claimed to be protectionist.

The WTO Dispute Settlement Body ruled on Monday that the United States had failed to remove its illegal cotton subsidies in compliance with an earlier WTO verdict.

The Brazilian Foreign Ministry said in a statement that once the decision was made in the ultimate phase of the process that analyzed the matter, it expects Washington to carry out the necessary changes in its legislation in order to follow the demands from the WTO appeals court.

The U.S. government's measures considered insufficient by the Brazilian government were the elimination of a program to subsidize the purchase of cotton and the implementation of administrative adjustments in its credit insurance programs for exporters.

Brazil first questioned the U.S. cotton subsidization policies in 2002. After the WTO Dispute Settlement Body adopts the decision announced on Monday, which is expected to be effective within 30 days, Brazil will send the matter to the settlement panel that will determine the counter-measures the organization will impose on the United States in case it does not follow the resolution.

http://news.xinhuanet.com/english/2008-06/03/content_8305585.htm

[Judi Lynn]

6. Brazil will seek sanctions against US after WTO ruling on cotton, top official says

Brazil will seek sanctions against US after WTO ruling on cotton, top official says
MARCO SIBAJA, Associated Press Writer



June 3, 2008 1:20 PM

BRASILIA, Brazil (AP) - Brazil will seek sanctions against the U.S. after winning a World Trade Organization ruling on cotton subsidies, a top Brazilian trade official said Tuesday.

Roberto Azevedo, the Brazilian Foreign Ministry's trade chief, said Brazil will pursue sanctions against the U.S., but he didn't indicate what amount his government would ask for.

Amaryllis Romano, an agribusiness expert at the Tendencias Consulting Group in Sao Paulo, estimated that Brazil could impose about US$4 billion in sanctions against the U.S. But she said such penalties could be counterproductive because Brazil needs the U.S. products and services that could be hit.

On Monday the U.S. lost its final appeal in the billion-dollar trade dispute over subsidies to U.S. cotton growers.

Because of the ruling, Brazil has the right to ask the WTO to authorize retaliatory trade sanctions that could run into the billions of dollars until Washington scraps the payments.

More:
http://www.newspress.com/Top/Article/article.jsp?Section=BUSINESS&ID=565309303779886972

[Judi Lynn]

7. WTO Panel Denies U.S. Appeal in Brazil Cotton Case

WTO PANEL DENIES U.S. APPEAL IN BRAZIL COTTON CASE
Jun. 9, 2008

National Association of Wheat Growers (NAWG) reports:

A World Trade Organization appeals panel ruled against the United States this week in ongoing litigation with Brazil over U.S. cotton programs.

The panel said the U.S. has not fully complied with previous rulings against it despite elimination of one program that helped the industry, the Step 2 program, modification of other export programs and a decrease in possible cotton supports in the 2008 Farm Bill.

In response to the ruling, representatives of the U.S. Trade Representative's office said the cotton market has changed significantly since the period examined by the WTO panel. The National Cotton Council also called the ruling "out of touch with existing market conditions".

The ruling would allow Brazil to take perhaps billions of dollars in retaliatory action, likely against U.S. trademarks and commercial services, though it is unclear when any retaliatory actions following the case could be taken.

http://www.agrimarketing.com/show_story.php?id=49591