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Cotton and the WTO: What has been Achieved?
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Description: |
The issue of cotton subsidies in developed countries is one of the most contentious and challenging ones for the World Trade Organisation (WTO). In the past the WTO has maintained that cotton should not be considered separately from other agricultural products, and the USA has supported this stance. However, the WTO stance was formally broken at the Doha Round ministerial conference in Hong Kong in December 2005, after a concerted two-and-a-half-year campaign by four West African cotton producing nations—Benin, Burkina Faso, Chad and Mali, known collectively as the C-4 group. The C-4 group was aided in its campaign by a legal challenge launched by Brazil against US cotton support policies in 2002. Brazil’s challenge helped to raise the profile of the C-4 group’s campaign and to secure worldwide coverage and widespread sympathy for the plight of the C-4 countries. All agricultural export subsidies will be eliminated by 2013 and domestic subsidies gradually reduced. In the case of cotton, developed countries are to eliminate export subsidies in 2006. Also, they will grant duty-free and quota-free access to exports from least developed countries (LDCs), although no timetable for this has been agreed. Domestic subsidies aimed at encouraging cotton growing will be gradually eliminated, and the WTO will find a way of channelling development assistance in order to mitigate poverty and improve the competitiveness and efficiency of cotton growing in least developed countries. However, some of these ambitions are likely to be strongly opposed in developed countries. Achieving them could therefore prove challenging. |
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Contents: |
SUMMARY INTRODUCTION THE HONG KONG WTO AGREEMENT: WHAT IT SAID HOW DID THIS DECLARATION COME ABOUT? THE WEST AFRICAN COTTON FOUR AND THE POLITICAL CAMPAIGN THE CORNERSTONE OF THE COTTON FOUR'S CASE: THE SECTORAL INITIATIVE The importance of cotton in West African economies Subsidies criticised in the EU and China Problems faced by West African cotton producers THE WTO WAKES UP TO THE COTTON PROBLEM THE DEVELOPING WORLD COMES TOGETHER IN PROTEST BRAZIL'S LEGAL CHALLENGE AGAINST THE USA THE ORIGINS OF BRAZIL'S CASE BRAZIL'S ARGUMENT THE USA PUTS UP A STUBBORN FIGHT THE C-4 GROUP'S INVOLVEMENT THE WTO DISPUTES PANEL'S INVESTIGATION The panel's investigation of domestic subsidies The panel's investigation of export subsidies Prejudice to Brazil VICTORY FOR BRAZIL: BUT NOT DEFEAT FOR THE USA HONG KONG: FRANTIC CLOSING SESSIONS A DECISIVE PUSH FOR SUPPORT BY THE WEST AFRICAN COTTON FOUR WHAT NOW?
List of tables Table 1: Principal events in the cotton subsidies dispute, Nov 2001-Dec 2005 Table 2: US cotton: comparison of support in accordance with Article 13(b)(ii) of the WTO Agreement on Agriculture, 1992-2002 |
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