Saturday, July 02, 2005

WTO Watch: U.S. Complies (Sort of) with WTO Cotton Subsidy Decision

As I suggested earlier this week, the U.S. government had to announce what it was going to do about the WTO's cotton subsidy decision by Friday, July 1. Well, the U.S. announcement is here and it is pretty mind-numbingly technical. It basically adjusts some export credit programs. The announcement was made by the U.S. Dept of Agriculture rather than the U.S. Trade Representative. Moreover, the budget cuts to the subsidies can't be done by the U.S. Executive alone and await future congressional action. Will this satisfy Brazil? I doubt it, but we'll see.

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