Responding to a suit brought by Brazil, the World Trade Organization agreed that the U.S. illegally subsidizes its cotton farmers. Farm subsidies artificially set world prices for a commodity and prevent third world countries like Brazil from competing in a fair and open market. Washington state is concerned that this decision could affect farmers who grow other crops as well.
I can remember hearing about farmers in central Califonia being paid millions by the government NOT to grow cotton. That's how they made their money.
Gawain Kripke, a policy advisor of Oxfam America, agrees with the decision: "Some farmers are harvesting checks from the government and others are getting nothing."
Celine Charveriat, spokeswoman for Oxfam's "Make Trade Fair" campaign, added, "This case raises deep questions about the entire U.S. subsidy system. U.S. subsidies have distorted global markets, failed to save small U.S. farmers, and promoted environmental damage. The U.S. should see this ruling as an opportunity for reform."
Saturday, March 05, 2005
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