National Cotton Council’s Response To WTO Brazil-U.S. Ruling

In response to the WTO Arbitration Panel decision released on Aug. 31, National Cotton Council (NCC) Chairman Jon Hardwick states that, "We are pleased that the arbitration award is far less than requested by Brazil, that the Panel provided no award with respect to the Step 2 cotton program, and that Brazil is not authorized to cross-retaliate at this time. This award, however, is based almost exclusively on 2005, the peak of U.S. cotton production, and doesn’t consider any U.S. policy changes made in the 2008 farm bill. The U.S. cotton program and export credit guarantee programs have changed considerably since 2005, with U.S. cotton production down 45 percent and the export credit guarantee program operating at no net cost. Today’s programs cannot possibly be determined to be causing injury in the world market."

NCC President Mark Lange states, "It is time for this ruling to be updated so the WTO can start focusing on the increasing subsidization of cotton by China and India. The difference between the Panel’s award and Brazil’s original request shows the unrealistic nature of Brazil’s claim, but even this amount fails to take into consideration the impact of U.S. cotton program changes made since 2005. U.S. cotton production in 2008 declined 45 percent; Brazil, China, and India production increased more than 20 percent. The increased cotton production in Brazil, China, and India has ensured that world cotton prices could not rebound."

The U.S. share of world cotton production has declined to 12 percent of total world cotton production – an eight percentage point decline since 2005 and the lowest since 1983. The retaliation authority granted by the Panel does not reflect these changes.

"The U.S. won on many of the critical legal components raised by Brazil during this arbitration process," Hardwick points out. "The Council commends the efforts of the Office of the U.S. Trade Representative (USTR) and its legal staff on this case as well as the cooperative and central role played by professionals from USDA. We will work with USTR and others to ensure that the many changes previously made to U.S. commodity programs are better understood by the WTO."

The WTO Arbitration Panel report issued today established the level of retaliation Brazil may take with respect to the U.S. export credit guarantee program and aspects of the U.S. cotton program. The Panel adopted a formula approach that requires the parties to conduct calculations to determine whether Brazil could cross-retaliate against intellectual property rights of U.S. companies. The Arbitration Panel authorized $147 million in retaliation authority for cotton and $147 million in retaliation authority for the export credit guarantee program – far less than the $2.7 billion in authority requested by Brazil and cross-retaliation is not authorized at this point.

Leave a Reply

Latest News
EquipmentCase Unveils 2000 Series Early Riser Planter At NFMS
February 10, 2016
Case IH revealed the all-new 2000 Series Early Riser planter to media and attendees at the opening of the National Read More
Syngenta Sign
Crop InputsSyngenta: Keep Ag In Mind During Election Season
February 10, 2016
As presidential candidates stake out their 2016 election platforms and key priorities, growers and their business partners should seek opportunities Read More
Crop InputsMarrone Bio Innovations Submits New Bio-Fungicide For E…
February 9, 2016
Marrone Bio Innovations, Inc. (MBI) today announced that it has submitted a new biological fungicide (MBI-110) to EPA. The broad spectrum Read More
Crop InputsWeed Expert: Adding A Second Herbicide Not Always Easy
February 9, 2016
In my last post, I reviewed some recent research that suggests one of the best ways to delay the evolution Read More
Crop InputsGenetic Literacy Project: Farmers Need More Herbicide C…
February 9, 2016
There are two things that I think just about every weed scientist can agree on, writes Andrew Kniss for The Read More
HerbicidesWeed Expert Warns North Dakota Growers Of Coming Herbic…
February 9, 2016
Ford Baldwin painted a bleak picture of weed control at a recent workshop here exploring the future of ag production, Read More
HerbicidesWSSA Announces New, Updated Free Web Resources
February 9, 2016
Today the Weed Science Society of American (WSSA) announced that new and updated educational materials for both weed scientists and Read More
Soybean field
FungicidesFour Arysta Fungicide Formulations Given FIFRA Approval…
February 8, 2016
Arysta LifeScience North America recently announced the issuance of Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Section 2(ee) Recommendations for Read More
FungicidesAgri-Fos Systemic Fungicide Plus Receives EPA Registrat…
February 8, 2016
Vivid Life Sciences has announced the EPA registration of Agri-Fos Systemic Fungicide Plus, a highly concentrated active ingredient phosphite fungicide, Read More
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More
Crop InputsBayer To Contest EPA Flubendiamide Decision
February 5, 2016
Crop Science, a division of Bayer, announced today it has refused a request by EPA to voluntarily cancel the uses Read More
Syngenta
Seed/BiotechNot So Fast: ChemChina Syngenta Takeover Could Draw Nat…
February 5, 2016
State-owned China National Chemical Corp. (ChemChina), which plans to buy Swiss seeds and pesticide maker Syngenta, will promptly start preparations Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechExpansion Of Syngenta’s North America Seedcare In…
February 4, 2016
As demand for seed treatment knowledge and products grows among farmers, retailers and others in the seed industry, Syngenta is Read More
Soybean Field
Industry NewsArysta LifeScience Strengthens Sales Team
February 4, 2016
Arysta LifeScience North America recently announced three new personnel additions: Jake Cook and Peter White are Territory Sales Managers for Read More
Davor Pisk Syngenta COO
Crop InputsSyngenta COO: Why ChemChina Offer Beat Monsanto’s
February 4, 2016
Syngenta Chief Operating Officer Davor Pisk says he is confident the proposed acquisition by ChemChina will ultimately help preserve choice Read More
Young corn plants in soil
Crop InputsKoch Biological Solutions Invests In Pathway Biologic
February 4, 2016
An affiliate of Koch Biological Solutions, LLC has acquired a minority equity position in, and entered into collaboration with, Pathway Read More