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
ManagementCorn and soy planting update; Takeaways from Climate Co…
December 2, 2016
AgriBusiness Global Editor Dave Frabotta Joins Paul Schrimpf for a discussion of global corn and soybean planting trends, and a Read More
Radish cover crop taproot
Crop InputsSoil Health Institute, Datu Research Receive Grant To E…
December 1, 2016
The Soil Health Institute (SHI) and Datu Research has announced a $626,000 grant from the Walton Family Foundation to quantify Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
ManagementAg Industry Comes Together To Address Climate Change
December 1, 2016
Addressing climate change — and more specifically, decreasing greenhouse gas emissions from agriculture — can only be achieved through collective Read More
Young soybean field
HerbicidesLiquid Formulation Valor EZ Herbicide Available For 201…
December 1, 2016
Valent U.S.A. Corp. has released Valor EZ; a liquid formulation of the company’s leading herbicide, Valor. Named Valor EZ Herbicide Read More
Key Cooperative Marcus Construction Steel Building
ManagementThe Value Of Cooperatives In Modern Agriculture
December 1, 2016
Editor’s Note: Jaxon Mullinnix of  Lone Tree, IA, was recently named the Iowa state winner of the 2017 GROWMARK essay Read More
AGCO Operator of the Year Tony Kornder
SprayersAGCO Names Tony Kornder Operator Of The Year
December 1, 2016
AGCO Corp. names Tony Kornder with Genesis Growing Solutions in Le Sueur, MN, the 11th annual Operator of the Year. Read More
Chris Henney OABA
ManagementOABA Industry Conference To Provide Outlook For Future …
November 29, 2016
The upcoming Ohio AgriBusiness Association Industry Conference is packed with widely-respected speakers and industry professionals, sharing their expertise on a Read More
Corn
InsecticidesMajor Review Finds Neonic Poses Low Risk To Aquatic Inv…
November 28, 2016
A major new ecotoxicological review and risk assessment has been published in the peer-reviewed literature and concluded that registered crop Read More
EquipmentGSI Details New Grain Drying Efficiency System for Coop…
November 28, 2016
Grain elevators and ag co-ops are always looking for ways to increase their energy efficiency to help improve profitability. For Read More
Precision AgTrimble Debuts End-to-End FMIS Platform
November 28, 2016
October’s inaugural PrecisionAg Vision Conference left this author with many thoughts and things to ponder in the coming months. Probably Read More
AGCO AgControl system
Precision AgPrecision Ag Technology: Rate Control For The Times
November 28, 2016
It’s not surprising that the need for more economical, effective application is driving the demand for the latest rate controllers Read More
ARA
Eric SfiligojTaking The Industry’s Pulse At ARA
November 28, 2016
When most of you read this particular column, many of the industry’s key folks will probably be spending at least Read More
CHS Primeland
CropLife 100The 2016 CropLife 100 Report: Reviewing The Many Bulls …
November 28, 2016
For virtually all of 2016, the nation was wholly focused on the big Presidential election. Some folks aligned themselves with Read More
FertilizerNutrient Management, Conservation Among Topics Covered …
November 23, 2016
Certified crop advisers, consultants, farmers, agribusiness professionals and students will learn more about nutrient management, soil and water conservation, pest Read More
Monsanto sign
Crop InputsMissouri Governor Meets With Bayer CEO To Discuss Monsa…
November 21, 2016
Missouri Gov. Jay Nixon visited Bayer AG global headquarters in Leverkusen, Germany, on November 18 to discuss the proposed Bayer-Monsanto Read More
Arysta LifeScience
Crop InputsArysta LifeScience Forms Alliance With Beem Biologics
November 21, 2016
As part of its recently announced strategy to become a leader in high-value, high-growth specialty market segments in the crop Read More
DuPont sign
Crop InputsDuPont To End Pension Contribution For Active Employees
November 18, 2016
DuPont will no longer contribute to active employees’ pension plans, a move that will affect the retirement of 13,000 workers, Read More