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Cotton growers should not expect any subsidies

06 Jan '06
1 min read

Cotton subsidies given to the US manufacturers have always been an apple of discord in trade dialogues between developed and developing countries.

The dispute caused collapse of world trade talks in 2003 at Cancun, Mexico.

WTO talks, which resume in the nearest future, might reduce support payments given to domestic cotton industry and this reduction would be implemented sooner, said Mark Lange, President, National Cotton Council.

In the WTO meet held last month at Hong Kong, as many as 149 countries agreed to remove all farm support subsidies on cotton by 2006.

This was a step that did not take money directly out of producers' pockets.

Lange said US manufacturers should not anticipate any relaxation in months ahead, as there would be intense pressure to make even further reductions in subsidies.

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