has claimed a victory over the US, the world''s second
largest cotton producer, after the World Trade Organization
(WTO) upheld its complaints that US subsidies to its
cotton farmers, distorted the price of cotton and made
it harder for developing nations to compete.
particularly those paid to the US cotton sector, have
been at the heart of disagreements at the stalled WTO
Hugueney, Brazil''s ambassador to the WTO, said, the
(WTO investigating) panel had recognised most of the
points that Brazil raised.
US said it was disappointed by the ruling and would
protect its farmers, even though Brazil has warned of
retaliation should the US not comply with the WTO''s
preliminary ruling. US Agriculture Secretary Mike Johanns
said that the US would work "very, very hard"
to protect the financial payments it made to cotton
farmer. He also said, "Brazil claims once again
to have largely defeated the US. They have been emboldened
by a declaration that they have a right to retaliate."
US argued that it had already taken sufficient steps
to meet WTO requirements, and had ended a number of
payments and credits, steps that prompted the WTO to
say that it was "very disappointed with these results".
changes made by the US were insufficient to bring the
challenged measures certain support payments
under the 2002 Farm Bill and export credit guarantees
into conformity with US WTO obligations."
WTO''s member nations are due to meet in September to
try and save the current Doha round of trade talks,
which started in Qatari capital in 2001.