🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

RPT-Poor states seek cotton safety net due to slump

Published 10/16/2009, 05:30 AM

* Poor states say also want faster elimination of subsidies

* Poor states seek faster action on duties, market access

(Repeats to additional subscribers, text unchanged)

By George Obulutsa

DAR ES SALAAM, Oct 16 (Reuters) - The world's poorest countries on Friday urged other World Trade Organization members to set up a safety net for cotton producers in poor nations, to help address losses arising from the world economic slump.

Trade Ministers from some 30 members of the Least Developed Countries (LDCs) also asked for quick action on removing trade-distorting subsidies and duty- and quota-free market access to cotton and cotton by-products from poor countries.

"We call upon the WTO Members to agree on ... the urgent setting up, in the context of current global economic and financial crisis, of a "safety net" mechanism by cotton producing LDCs to address revenue losses," the group said in a declaration on Friday at a meeting in Tanzania.

The statement did not detail how poor cotton producers would like any safety net to work.

The economic slump that slashed demand and prices of cotton had hit poor cotton producers that were already complaining of rich countries' subsidies for the crop.

Countries such as Burkina Faso, Benin, Mali and Chad -- all LDC members -- have in the past asked for drastic cuts in subsidies by U.S. producers. Washington has yet to respond.

A deal slashing subsidies is seen as a critical test in reaching a fair farm trade agreement under the Doha round of trade talks launched in the Qatari capital in 2001.

The Doha round aims to free up world trade by cutting farm subsidies and tariffs on agricultural and industrial goods, and so help poor countries to prosper.

The LDCs also called for faster implementation of duty- and quota-free market access for poor economies and provision of waivers in opening markets for trade in services.

Leaders of the Group of 20 major economies recently said they were committed to concluding the Doha round by the end of 2010. [ID:nN25484424]

Sweden's trade minister said earlier this week the talks could drag into 2011 if the United States failed to set out its international trade policy soon. [ID:nLC353849] (Editing by Jon Boyle)

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.