Home / Knowledge / News / Textiles / Brazilian cotton growers pessimistic on US subsidy issue
Brazilian cotton growers pessimistic on US subsidy issue
21
Jan '14
Brazilian cotton growers who recently visited Washington expressed their disappointment on US Congress’ delay in passing the Farm Bill in time to comply with the international standards on cotton subsidies in order to avoid trade sanctions on US exports to Brazil, reports Reuters.
 
In 2010, Brazil had challenged US cotton subsidies at the World Trade Organization (WTO) and won authorization to receive US$ 831 million per year, with US$ 591 million in products and about US$ 240 million in intellectual property.
 
However, through a memorandum of understanding (MoU), the US Government agreed to make an annual payment of US$ 147.3 million, in monthly installments to the Brazilian Cotton Institute (IBA), until the Farm Bill was passed, which would eliminate the long-standing subsidies that caused the dispute.
 
The Farm Bill is more than a year overdue and Brazilian cotton producers expressed their dissatisfaction after visits to Washington last week where they were not reassured that the legislation, which could pass this month, would be complying with the WTO rules against trade-distorting subsidies.
 
Gilson Pinesso, president of the Brazilian Cotton Growers Association (ABRAPA), said that during the visits to the US Congress, the delegation of cotton producers did not witness any effort undertaken to make the new Farm Bill comply with the standards.
 
There are no options left but retaliation, said Welber Oliveira Barral, former Brazilian secretary of development, industry and trade, who also was part of the delegation that visited Washington.
 
In December 2013, Brazil’s Council of Ministers of the Foreign Trade Chamber (CAMEX), decided to restart in January 2014, the process of public consultations on intellectual property in retaliation against the US, under the cotton dispute.
 
CAMEX also decided on the continuity of the technical group, established to identify, evaluate and formulate proposals for the implementation of authorized countermeasures, until February 28, 2014, with the aim of taking a decision about the adoption of retaliatory measures.
 
The last farm bill expired on September 30, 2013, and the US Government has also stopped paying its monthly installments to the IBA since September 2013.
 

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Ikea

Textiles | On 26th Apr 2017

Ikea’s product sourcing from India to double by 2020

Ikea, the global home furnishing giant from Sweden, plans to double...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search