Cotton Dispute Not In U.S. Favor
An appellate group of the World Trade Organization (WTO) did not overturn the 2004 ruling against U.S. cotton subsidies, Farm Progress reports. Brazil brought the case against the U.S., and the U.S. has challenged the decision and made changes hoping that it would have been overturned.
Were clearly disappointed with the findings that came out of the WTO, said Sean Spicer of the U.S. Trade Representatives Office. We believe the changes that were made by the United States to bring the challenge payments and guarantees into compliance with the WTOs recommendations did just that.
The U.S. can take the matter to arbitration before a WTO dispute panel, according to Spicer. He says the prices the WTO looked at differed from current market prices. So the U.S. is not and has not been making payments tied to cotton production, Spicer said. There is no basis to say U.S. payments are having any impact on cotton prices.