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

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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:
July 2017

July 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