The media reports that to fulfill the consent in WTO negotiation conference held in December.2005, US will terminate cotton export allowance measure on August.1, 2006. In February, 2006, Bush President signed new trade act to stop the support to cotton peasant, which means that US importer and manufacturers will no longer get allowance when they purchase cotton from cotton peasant at high price.
In 2003, Brazil complained to WTO that US government offer allowance to US cotton peasant, which distort global market and give unequal competition advantage to US exporter. US cotton allowance measures hurt the benefit of West-Africa cotton manufacturing countries whose export is influenced by world price. WTO made final arbitrary in 2005 that US cotton allowance belongs to trade retort ion and should be removed.
Brazil government and cotton industry officials declared that they were begining to strike US other cotton projects. The president of Brazil Cotton Planter Association Helio Tollini said that US have no any denotation about anti-circle payment, promotion credit assistance and federation price assure. Brazil government is always considering whether to ask WTO Law Committee to allow them to impose 4billion USD retaliatory tariff on US import because they think that US have not reduced cotton allowance completely.
In 2003, Brazil complained to WTO that US government offer allowance to US cotton peasant, which distort global market and give unequal competition advantage to US exporter. US cotton allowance measures hurt the benefit of West-Africa cotton manufacturing countries whose export is influenced by world price. WTO made final arbitrary in 2005 that US cotton allowance belongs to trade retort ion and should be removed.
Brazil government and cotton industry officials declared that they were begining to strike US other cotton projects. The president of Brazil Cotton Planter Association Helio Tollini said that US have no any denotation about anti-circle payment, promotion credit assistance and federation price assure. Brazil government is always considering whether to ask WTO Law Committee to allow them to impose 4billion USD retaliatory tariff on US import because they think that US have not reduced cotton allowance completely.
