Cotton This
A World Trade Organization panel in Geneva, Switzerland, has ruled that a series of U.S. cotton subsidies are illegal and should be scrapped. The ruling is a victory for Brazil and West Africa, cotton producers that said the U.S. subsidies have depressed worldwide cotton prices. Under the 2002 farm bill, the United States grants subsidies and export guarantees to cotton growers and exporters. Many of those subsidies were retained in the recent $286 billion farm bill, which leaves many cotton programs intact for the next five years. The WTO ruling opens the door for Brazil to impose annual sanctions against U.S. products. The U.S. Trade Representative in Washington, D.C., said a final appeal is being considered.
