Home / Knowledge / News / Textiles / US, Brazil reach agreement to end WTO Cotton dispute
US, Brazil reach agreement to end WTO Cotton dispute
02
Oct '14
The United States and Brazil have agreed to settle their long-standing Cotton dispute in the World Trade Organization (WTO).
 
As per the agreement, Brazil will relinquish all rights to countermeasures against US trade. In turn, the US will make a one-time final contribution of US$ 300 million to the Brazil Cotton Institute, or IBA. The MOU also provides for additional uses for the funds, such as research in conjunction with US institutions.
 
Both countries also agreed to formally terminate of the Cotton case at the WTO Dispute Settlement Body within 21 days.
 
“Brazil has also agreed not to bring new WTO actions against US cotton support programs while the current US Farm Bill is in force or against agricultural export credit guarantees under the GSM-102 program as long as the program is operated consistent with the agreed terms,” the US Department of Agriculture (USDA) said in a statement.
 
“I am pleased that the United States and Brazil have found a permanent resolution to the Cotton dispute,” said US Trade Representative Michael Froman. The agreement brings to a close a matter which put hundreds of millions of dollars in US exports at risk, he added.
 
US Agriculture Secretary Tom Vilsack said, “Without this agreement, American businesses, including agricultural businesses and producers, could have faced countermeasures in the way of increased tariffs totaling hundreds of millions of dollars every year. This removes that threat and ensures American cotton farmers will have effective risk management tools.”
 
The Cotton dispute is a decade-long dispute brought by Brazil against the US at the WTO. In 2005 and again in 2008, the WTO found that certain US agriculture programs (domestic support to cotton under the marketing loan and countercyclical payment programs, and export credit guarantees under the GSM-102 program) were inconsistent with the commitments made by the US to the WTO. In August 2009, WTO arbitrators provided the level of countermeasures that Brazil could impose against US trade.
 
Subsequently in June 2010, the US and Brazil signed a Framework Agreement to avert the imposition of countermeasures by Brazil. The Framework provided specific interim steps and a process for quarterly discussions on the programs at issue. The US also made monthly payments to the IBA for technical assistance and capacity building activities for the sector under a related Memorandum of Understanding (MOU).
 
However, the Framework expired on February 7, 2014, when the 2014 Farm Bill was enacted. The Farm Bill included significant changes to US cotton domestic support programs, along with changes to the GSM-102 program. (RKS)
 

Fibre2fashion News Desk - India


Must ReadView All

Sanjay K Jain, managing director, TT Ltd

Textiles | On 21st Sep 2017

TT’s Sanjay Jain elected new chairman of CITI

The Confederation of Indian Textile Industry (CITI), the apex body...

Textiles | On 21st Sep 2017

NRF urges US lawmakers to lower corporate tax rates

The National Retail Federation (NRF) has written to the US Senate...

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Larry L Kinn
Suominen Corporation

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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