Expectations are growing that the U.S. government will offer a compromise at next week's trade talks in order to stimulate a deal, with part of the concession focused on cotton. U.S. Trade Representative Susan Schwab stated the U.S. would support a cotton arrangement in line with the 2005 accord reached on cotton in the Hong Kong talks. The agreement called for:
Developed countries to eliminate all forms of cotton export subsidies.
Developed countries allow duty and quota-free entry for cotton imports from less-developed countries.
Trade distorting domestic support for cotton production would be reduced by an agreed formula to be implemented within a short period.
With prices now adversely affecting cotton acreage worldwide, the U.S. subsidy program is not the center of attention it was previously.
Developed countries to eliminate all forms of cotton export subsidies.
Developed countries allow duty and quota-free entry for cotton imports from less-developed countries.
Trade distorting domestic support for cotton production would be reduced by an agreed formula to be implemented within a short period.
With prices now adversely affecting cotton acreage worldwide, the U.S. subsidy program is not the center of attention it was previously.
