The Brazilian government has staked a claim to US $2.5 billion at the World Trade Organization (WTO), for the prejudice suffered by its cotton farmers between 1998 and 2000, due to the subsidies the US government offers to its cotton farmers.
This was informed by Mr Azevedo, the Brazilian ambassador to the WTO. He added by saying that, “If the big countries are not penalized for violation of WTO rules, it would affect the credibility of the global trade organization”.
Last year WTO had upheld a complaint from Brazil alleging that the US had infringed the WTO rules by providing subsidies to its farmers. Brazil alleges that subsidies doled out to cotton farmers touches about 89.5 percent of the value of the produce.
The huge subsidies paid out by the US to its farmers has been criticized by many countries, including Asian and African countries as these subsidies depresses global prices and in the process affects the earnings of the cotton farmers in those countries.
Fibre2fashion News Desk - India
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