US loses WTO cotton subsidy case

[NashVegas]

http://news.bbc.co.uk/2/hi/business/3662183.stm

The World Trade Organisation has dealt the US a significant blow in a key trade battle by ruling that subsidies to its cotton farmers were unfair.

...

It is the first time that a country's domestic farm subsidies have been challenged and may prompt more cases.

The US has said it will appeal against the decision unless it is changed.

According to Brazil's complaint, the US paid its farmers almost $4bn (£2.2bn) in cotton subsidies between 2001 and 2002 for a crop that was worth $3bn.

[hedda_foil]

1. So we're not just subsidizing, we're paying through the nose.

This is insane!

the US paid its farmers almost $4bn (£2.2bn) in cotton subsidies between 2001 and 2002 for a crop that was worth $3bn.

[Tansy_Gold]

2. Related to the thread on Colorado River water

The subsidies to cotton growers in Arizona allow them to use millions of acre-feet of water (usually groundwater) to grow a crop that essentially is entirely surplus. Without the subsidies for irrigation water, there would be no cotton crop in Arizona.

I will have no tears of pity if these subsidies go the way of the Great Auk.

[AZCat]

5. Yes- hopefully the big three 'C's will draw to a close here in Az

Cotton, Cattle, and Copper - all big users of groundwater, heavily subsidized.

It's a frickin' desert, for crissakes!

[denverbill]

3. Three cheers for WTO, NAFTA, and free trade in general!!!

Hip-hip....


On a positive note, cotton is grown almost exclusively in right-wing country. I can't wait to hear the right-wingers extolling the virtues of free trade to the cotton farmers who are going to lose more than 1/2 their income.

[TX-RAT]

4. Good news

eliminate all subsidy's and tariffs

[Commie Pinko Dirtbag]

6. Brazil to USA: I'M RICK JAMES...

...well, you know the rest.

[hang a left]

7. What I don't understand is, if it is the decision, how could it be changed

"The US has said it will appeal against the decision unless it is changed."



Also if anyone knows, what other crops, or products, do we subsidize in the name of free trade.

And from the article, what is Kerry talking about when he states that he would more aggressively pursue WTO. I guess I need a lesson in trade here.