NCC Statement on WTO Appellate Ruling

The National Cotton Council is disappointed with the ruling by the appellate body of the World Trade Organization. As we have stated before, there were several aspects of the Panel’s findings that we believe are inconsistent with the intent of the Agriculture Agreement and are inconsistent with long-standing interpretations of that agreement.

Our initial, cursory review of the findings of the Appellate Body indicates that it upheld the Panel decision in most respects, including its determinations concerning the export credit guarantee program, cotton’s step 2 program, classification of direct payments, and serious prejudice. While the Appellate Body did modify somewhat the Panel’s decision regarding aspects of the Peace Clause analysis, those modifications did not alter the final result that the Peace Clause did not shield the U.S. cotton program from Brazil’s allegations.

The National Cotton Council will be closely reviewing the Appellate Body’s analysis over the next few days and will consult with the Administration and Congress on this decision. There will be no immediate changes in the U.S. cotton program. We will, however, work with Congress and the Administration to formulate an appropriate response to this decision.

"We're interested in results, not litigation. Getting the results that our farmers want is best achieved through ambitious global agriculture reform, through ongoing multilateral trade negotiations which address market access, export competition and domestic support, including for cotton. We will study the report carefully and work closely with Congress and our farm community on our next steps."
- U.S. Trade Representative spokesman Richard Mills

"We are disappointed in today's decision because U.S. farm programs were carefully crafted to meet our WTO obligations. As we review the WTO report more thoroughly, we will continue to work closely with our agricultural community and Congress. I know that America's farmers and ranchers can compete as long as there is a level playing field, and we intend to work tirelessly to achieve that goal."
- Undersecretary of Agriculture J.B. Penn

"While we are disappointed by the result, we will carefully review the decision in the days to come. Nothing in the ruling requires immediate action. Although we still believe the cotton program and the Farm Bill conform to our World Trade Organization (WTO) commitments, I will work closely with my colleagues in the Congress and within the Administration to engage the issues raised in the appellate panel."
- Senate Agriculture Committee Chairman Saxby Chambliss (R-GA)

"Careful consideration has been given in crafting of U.S. farm policy and it is still my belief that the Farm Bill remains compliant within World Trade Organization commitments."
- Senate Appropriations Committee Chairman Thad Cochran (R-MS)