This week’s Cotton Newsline is four cuts. All cuts are Dr. Gary Adams, Vice-President of Economics and Policy Analysis for the National Cotton Council.
Suggested introduction cut 1:
U.S. Trade Representative Rob Portman announced this week a major new U.S. proposal for the agricultural agreement in the current Doha Round of the World Trade Organization. According to the U.S. offer, they want to move aggressively by supporting a 60% cut in amber box support over the next five years. The U.S. is also ready to reduce by half the agreed cap of blue box payments. Gary Adams, Vice-President of Economics and Policy Analysis for the National Cotton Council says this new proposal will impact domestic cotton programs.
Suggested introduction cut 2:
Adams says there will definitely be changes to farm programs but how much market access will be gained is still unknown.
Suggested introduction cut 3:
According to Adams the troubling aspect for the U.S. cotton industry is that China continues to seek special treatment in the WTO so it can avoid market access concessions.
Suggested introduction cut 4:
Adams also emphasized the need to maintain a program that provides an effective safety net for U.S. producers.