Low-cost cotton producers to pick up business as era of subsidies unwinds

The era of heavy subsidies for cotton growers in Europe and the US appears to be coming to an end following last weekend's WTO deal where rich countries agreed to negotiate about reducing farm subsidies.

The decision followed the WTO ruling last month that US subsidies to cotton farmers violated international trade regulations, and the recent decision by the European Commission to de-couple their subsidies to cotton farmers in Greece and Spain, making future payments less linked to production. Terry Townsend, executive director of the International Cotton Advisory Committee, a Washington-based industry body, says cotton production in Europe could fall by as much as 90 per cent and in the US by a third, if cotton subsidies are completely abolished.

http://ec.europa.eu/comm/agriculture/markets/cotton/index_en.htm http://ec.europa.eu/comm/agriculture/markets/cotton/index_en.htm

http://www.icac.org/ http://www.icac.org/

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