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US cotton industry applauds move to file WTO against China

The Obama administration recently decided to file a WTO trade enforcement action against rice, wheat and corn price support programs of the People’s Republic of China. And, supporting the government in its move, the US cotton industry has applauded the decision of the Obama administration.

At a press conference to announce the trade enforcement action against Chinese rice, wheat and corn support on September 13, US officials said China’s use of market price support for the three key crops has been in excess of its commitment of no more than 8.5 per cent of the market value under World Trade Organization rules. But it is said China’s market price support for these products is estimated to be nearly $100 billion in excess of the levels China committed to during its accession to the WTO.

Industry leaders are of the view that a similar action should be taken against China’s excessive support programs for cotton farmers which they argue have contributed to a one-third reduction in US cotton acreage since 2011. Members of the House and Senate Agriculture committees and other members of Congress also participated in the briefing.

Besides, China’s synthetic fiber subsidies that are the reason of causing even more stress in the world fiber markets than its cotton support programs, according to Gary Adams, president and CEO of the National Cotton Council (NCC) of America. Adams noted that cotton is the only agricultural commodity with an explicit mechanism that allows for the multilateral evaluation of domestic support, export subsidies and market access. This came up through the semi-annual dedicated discussions established by the WTO in December 2013.

 
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