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


Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Nuno Venda, ROQ

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Eric Fessler,

Eric Fessler

Manufacturer of textile machinery and complete fibre-to-yarn lines, N...

Yariv Bustan,

Yariv Bustan

Founded in Israel in 2015, Twine Solutions is a tech start-up that has...

Marcello Galvanin,

Marcello Galvanin

Galvanin has more than 50 years of experience in the production of textile ...

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

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

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

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

Leave your Comments


November 2019

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

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search