U.S. Delaying Cotton Reform

Oxfam Concerned U.S. Delaying Cotton Reform; U.S. Response to WTO Ruling Indicates Stalling, Poor Farmers Suffer Consequences

3/4/2005 2:32:00 PM

To: National Desk

Contact: Laura Rusu of Oxfam America, 202-496-3620 or 202-459-3739, Web: http://www.oxfamamerica.org

WASHINGTON, March 4 /U.S. Newswire/ -- International agency Oxfam raised concern over statements by US government officials that no reforms may be needed to comply with yesterday's final WTO ruling, which deemed its cotton subsidies inconsistent with international trade rules. Delay in eliminating trade-distorting subsidies will mean increased poverty for millions of struggling farmers in poor countries who depend on agriculture for their livelihood. Delay also threatens to undermine the WTO system.

In response to yesterday's developments, Washington signalled that it is looking to continue negotiations rather than implement the ruling, indicating that it would delay concrete action until the Doha Round of trade talks is complete. This is particularly troubling as the US Department of Agriculture forecasts record- breaking outlays in 2005 for cotton subsidies, surpassing $4 billion. Losses for poor African cotton-producers Benin, Burkina Faso, Chad and Mali could top $1 billion if the US delays reform over the next eight years.

"Billions of dollars in US cotton subsidies are a slap in the face to poor farmers, millions of whom who are struggling to survive on a dollar a day," said Gawain Kripke, spokesperson for Oxfam's Make Trade Fair Campaign in Washington. "If the US stalls reform, it will cost poor Africans farmers the chance to trade their way out of poverty and perpetuate an unfair system of rules rigged for the rich."

Failure on the part of the US to implement the WTO decision would also damage prospects for a new global trade deal on agriculture in the Doha Round and beyond.

"The US expects our trading partners to abide by the rule, but seems to want to bail out of our own," continued Kripke. "Dodging and diving around this WTO ruling will seriously undermine US credibility to negotiate new rules."

While America's largest cotton producers are expecting to enjoy a bumper crop this year and the record setting subsidies to boot, many West African farmers wonder if they will earn enough to cover input costs, let alone feed and clothe their families.

"You must tell the Americans that we are all in one world, they are our brothers, we need each other," said Nicodeme Biwando, a cotton farmer in Burkina Faso asked of Oxfam. "Their way of doing things is not good, because it keeps us from moving forward. May they find a solution so that all of us together, them and us, can make progress."

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