African Nations Call for U.S. to Eliminate Cotton Subsidies
Throughout the week, cotton-growing countries in Africa, which are among some of the poorest on Earth, have pressed the United States to swiftly do away with cotton subsidies for American farmers. Africans blame the U.S. support for holding down global prices for the commodity and depressing their economies.
Discord over cotton was a crucial factor in the breakup of the WTO's ministerial conference two years ago in Cancun, Mexico. And once again it has been a touchstone, symbolizing the concerns of developing nations over the agricultural trade policies of wealthy countries, particularly those in the European Union. As negotiations near an end this weekend in Hong Kong, there were few signs that the impasse would be broken.
"Without a deal in cotton, we won't get a broader agreement," WTO spokesman Keith Rockwell said.
The WTO's hope for Hong Kong was that delegates from 149 countries would agree on formulas for reducing tariffs and eliminating other trade barriers for agricultural and industrial goods, with the intent of helping developing countries.
But with myriad unresolved issues over cotton, as well as bananas, sugar and other commodities, the best hope for the weekend may be that delegates will settle on key terms and language and a date for eliminating export subsidies. They are expected to meet again in March; the WTO is racing to complete a new trade accord under the so-called Doha development round by next year.
Eloi Laourou, Benin's economic consul in Geneva, was still holding out hope that a deal could be reached on cotton here, although he described the current U.S. offer as "not sufficient."
Washington's subsidies for the 25,000 U.S. cotton growers, including 1,500 in California, are projected to be about $3.5 billion this year, according to industry and government estimates. That's more than four times the entire value of the cotton produced by more than 10 million farmers in Africa.
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