U.S. Groups Worried by WTO Finding

WASHINGTON - Apr 28/04 - SNS -- A confidential, interim report from the World Trade Organization (WTO) is generating considerable anxiety in both legislative circles and among commodity groups in the United States.

The report appears to side with most governments and organizations outside the United States, who believe the U.S. Farm Program constitutes an unrepentant and trade distorting subsidy to agricultural producers in the United States and is therefore contrary to U.S. obligations under the WTO.

According to details leaked from Brazil, a WTO panel found U.S. cotton subsidies encourage excess production, resulting in lower world prices than would otherwise be the case. Legislators in the United States had intended that the 2002 Farm Bill would be consistent with WTO obligations.

By reaching a different conclusion on cotton, other commodity groups in the United States fear income support programs for soybeans, wheat, corn, field peas, lentils and other commodities could be similarly challenged.

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