Tsk, tsk, tsk...busted again

WTO Upholds Brazil's Cotton Complaint
The Associated Press
Thursday, March 3, 2005; 12:25 PM

GENEVA - The World Trade Organization on Thursday upheld a ruling condemning government help for cotton producers in the United States, saying that many U.S. programs include illegal export subsidies or domestic payments that are higher than permitted by WTO rules.

The WTO appeals body rejected a U.S. attempt to overturn a September 2004 ruling by an independent panel of trade experts, which acted on a complaint from Brazil.

Brazil had alleged that the United States kept its place as the planet's second-largest cotton grower and largest exporter because the U.S. government paid $12.5 billion in subsidies to American farmers between August 1999 and July 2003.

The United States had insisted that its payments to farmers are within permitted levels, claiming many are not subsidies as defined by WTO.[P6: emphasis added]

Washington lodged its appeal in October 2004 to WTO, whose members set the rules for global commerce. Thursday's appeals body ruling is final.

WTO uses independent panels to rule on disputes among its 148 member nations.

Posted by Prometheus 6 on March 3, 2005 - 3:29pm :: Economics
 
 

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