Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-African producers may litigate over U.S. cotton

Published 12/01/2009, 12:33 PM
Updated 12/01/2009, 12:36 PM

* Slow Doha Round pace increases frustration over cotton

* Follows successful Brazilian challenge in WTO court

(Adds background)

GENEVA, Dec 1 (Reuters) - African cotton producers will consider taking legal action against Washington if harmful U.S. subsidies are not repealed promptly, Burkina Faso Trade Minister Mamadou Sanou said on Tuesday.

Speaking to journalists during a World Trade Organisation ministerial meeting in Geneva, Sanou said it was not reasonable for poor African states to wait until the beleaguered Doha Round of trade negotiations wraps up for the market distortions to be fixed.

"We cannot wait for ever because our entire cotton industry will disappear," he said. "If we were to take a case against the United States, it would be our right. It is not a threat. We are entitled to do so in an entirely fair-play fashion."

Last month the WTO's court authorised Brazil to impose trade sanctions on Washington in a similar dispute over U.S. cotton subsidies. [ID:nN19192200] The United States is the world's biggest cotton exporter.

Earlier on Tuesday, South African Trade Minister Rob Davies said that Washington should enact cotton subsidy cuts before the rest of the Doha Round deal is complete.

"That would be fair and just," he told Reuters in an interview. "The situation of cotton farmers in West Africa is desperate, that is the reality, and it has only gotten worse with the onset of the crisis." (Reporting by Jason Rhodes and Laura MacInnis, editing by Mark Trevelyan) ((geneva.newsroom@reuters.com; Tel. +41 79 240 9036))

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.