US National Cotton Council Speaks On WTO Ruling
6 August 2007 NCC stated that if press reports are true, the WTO panel’s findings are out of touch with facts in the world cotton market.
"US actions already taken to comply with the first WTO Panel ruling have had a significant impact on US cotton and US cotton producers," NCC said. "Since Congress eliminated cotton’s Step 2 program, US cotton acreage is down 28% for 2007; US exports have declined significantly; and US production is predicted to be only around 17 million bales in 2007, the lowest since 2002. It cannot be argued any payments under domestic support programs are causing any country serious prejudice in 2007."
"It is incomprehensible that a WTO panel could make a finding of serious prejudice against the US when the international cotton market is strong; offtake will exceed production; world prices are up; and acreage is up almost everywhere in the world except the United States," NCC said.
Once the details are clear, it is expected that the US will appeal the WTO findings.
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