Developing country cotton producers want the United States to cut its agriculture subsidies, which are an unfair international trade practice forcing the growers in the developing countries out of markets.
These subsidies have come under scrutiny as international trade has increasingly been seen as an integral component of poverty reduction. International development advocates such as Oxfam America and the National Peace Corps Association argue that U.S. agriculture subsidies undercut the work of small-scale farmers in developing countries
“Around $550 billion are allocated for subsidies for agriculture in US,” senior member Pakistan Yarn Merchant Association (PYMA), Ghulam Rabbani said Wednesday.
The United States was committed to a deal on cotton in the long-running Doha trade talks, but has not yet reached an agreement. He said major cotton producers were facing hardship due to USA’s stubborn attitude towards not cutting subsidies.
“This is unfair practice and Pakistan is amongst the cotton producing countries where growers are facing high cost besides high bank rates,” Rabbani said. He said the textile and spinning sector has to import around 2.8 million bales this season to meet the shortfall and keep the wheel of the industry moving. According the Dow Jones, “The US Attache forecast Brazil’s cotton area and production to fall by 20 percent from last year, to 850,000 hectares or 5.7 million bales.
Rabbani said the drop was related to higher production costs and an uncertain economic environment. Similarly cotton arrivals from the new season crop in India, the world’s largest exporter, fell to 21.89 million bales as on February 21, 2009 down 7.1 percent on the year, according to data provided by Cotton Corp of India. China was also facing the same fate and expecting a shortfall of millions of tonnes this year.
WTO members agreed in Hong Kong in 2005 to cut subsidies on cotton faster and more deeply than supports on other agricultural goods. But that cotton deal is dependent on a broader agreement on agriculture.
He said according to Cotlook estimates, 2009-10 world cotton production remained at 23,007,000 tonnes against 23,393,000 in 2008-09.
The world consumption was pegged at 23,030,000 tonnes against 22,651,000 tonnes this year and world ending stocks are estimated to decline by 23 million tonnes against a forecasted of 742,000 tonnes at the end of 2008-09 marketing season.
US Trade Representative Susan Schwab, who stepped down on January 20 said cotton would have been part of a deal if ministers had reached an outline agreement at the World Trade Organisation (WTO). Four African cotton producers, Benin, Burkina Faso, Chad and Mali have made a proposal that would see US subsidies fall 82.2 percent in around two years against a 60 percent cut over five years for US farm support generally. The United States has not made a counter-proposal. Low prices, high production costs and falling demand because of the global economic crisis forced an increase in US cotton subsidies under current programmes, although many farmers are switching to other crops.
These subsidies have come under scrutiny as international trade has increasingly been seen as an integral component of poverty reduction. International development advocates such as Oxfam America and the National Peace Corps Association argue that U.S. agriculture subsidies undercut the work of small-scale farmers in developing countries
“Around $550 billion are allocated for subsidies for agriculture in US,” senior member Pakistan Yarn Merchant Association (PYMA), Ghulam Rabbani said Wednesday.
The United States was committed to a deal on cotton in the long-running Doha trade talks, but has not yet reached an agreement. He said major cotton producers were facing hardship due to USA’s stubborn attitude towards not cutting subsidies.
“This is unfair practice and Pakistan is amongst the cotton producing countries where growers are facing high cost besides high bank rates,” Rabbani said. He said the textile and spinning sector has to import around 2.8 million bales this season to meet the shortfall and keep the wheel of the industry moving. According the Dow Jones, “The US Attache forecast Brazil’s cotton area and production to fall by 20 percent from last year, to 850,000 hectares or 5.7 million bales.
Rabbani said the drop was related to higher production costs and an uncertain economic environment. Similarly cotton arrivals from the new season crop in India, the world’s largest exporter, fell to 21.89 million bales as on February 21, 2009 down 7.1 percent on the year, according to data provided by Cotton Corp of India. China was also facing the same fate and expecting a shortfall of millions of tonnes this year.
WTO members agreed in Hong Kong in 2005 to cut subsidies on cotton faster and more deeply than supports on other agricultural goods. But that cotton deal is dependent on a broader agreement on agriculture.
He said according to Cotlook estimates, 2009-10 world cotton production remained at 23,007,000 tonnes against 23,393,000 in 2008-09.
The world consumption was pegged at 23,030,000 tonnes against 22,651,000 tonnes this year and world ending stocks are estimated to decline by 23 million tonnes against a forecasted of 742,000 tonnes at the end of 2008-09 marketing season.
US Trade Representative Susan Schwab, who stepped down on January 20 said cotton would have been part of a deal if ministers had reached an outline agreement at the World Trade Organisation (WTO). Four African cotton producers, Benin, Burkina Faso, Chad and Mali have made a proposal that would see US subsidies fall 82.2 percent in around two years against a 60 percent cut over five years for US farm support generally. The United States has not made a counter-proposal. Low prices, high production costs and falling demand because of the global economic crisis forced an increase in US cotton subsidies under current programmes, although many farmers are switching to other crops.
