Thursday, July 07, 2005

WTO Watch: Bush Will Comply, but will Congress?

In yet another case of U.S. compliance with an international tribunal ruling, the Bush Administration has proposed legislative changes that would reduce U.S. cotton subsidies (by about $350 million) and bring the U.S. into compliance with a WTO decision won by Brazil. This action follows its announcement last week that the Administration would make certain administrative adjustments to comply as well.

Brazil has filed a request for WTO permission to retaliate, but appears ready to suspend this retaliation unless Congress refuses to enact the changes. And Congress, at least according to this report, is not exactly rushing to comply. Note how this is moving out of the President's hands and into the tricky waters of congressional politics.

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