Home / Knowledge / News / Textiles / Brazilian impose sanctions may hurt cotton trade – NCC
Brazilian impose sanctions may hurt cotton trade – NCC
09
Mar '10
Given world cotton market conditions and the dramatic changes that have been made in the U.S. cotton program, Brazil's latest actions are imposing unwarranted harm on Brazilian and American interests in times of economic hardship for all. Historically, dispute settlement is frequently made more difficult, not easier by the application of retaliatory trade measures. Both Brazilian and American firms will find themselves economically disadvantaged by the imposition of such duties.

Brazil is taking retaliatory steps even though world cotton prices are more than 50 percent higher than 2005, which served as the basis for the original Panel ruling. U.S. cotton harvested acreage and production are down by more than 40 percent, while production in Brazil, China and India has expanded.

In response to the findings of the original World Trade Organization (WTO) panel, cotton's Step 2 program was eliminated in 2006. The 2008 U.S. farm bill lowered the upland cotton counter-cyclical target price and made changes in the marketing loan program, effectively lowering the average loan benefit to producers. The costs of U.S. cotton price-related programs are down more than 80 percent from the previous five-year average and are projected to be minimal for the foreseeable future.

The U.S. cotton program's share of the retaliation awarded to Brazil by the WTO is relatively small and fixed at $147 million. The retaliation damages associated with the export credit guarantee program, which are determined annually using a formula developed by an arbitration Panel, were recently claimed by Brazil at more than $600 million.

The higher import duties announced by Brazil do not take effect for 30 days. The two governments should engage in discussions to avoid the harmful effects of retaliation, but any resolution must recognize the realities of today's cotton market and the previous changes in U.S. programs.

National Cotton Council of America


Must ReadView All

New US alliance to promote postal package delivery service

Textiles | On 15th Aug 2018

New US alliance to promote postal package delivery service

A group of US retailing, e-commerce and logistics firms recently...

Courtesy: Industriall Union

Apparel/Garments | On 15th Aug 2018

IndustriALL-Esprit agreement to improve workers' rights

IndustriALL Global Union recently signed a global framework agreement ...

Indian minister orders fresh consultations on e-com policy

Textiles | On 15th Aug 2018

Indian minister orders fresh consultations on e-com policy

Indian commerce and industry minister Suresh Prabhu has asked for...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Samar Firdos
Arvind Ltd

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

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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


August 2018

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

news category


Related Categories:

Advanced Search