The US cotton subsidies features on the main agenda at WTO meet this year.
Even Peter Mandelson, the EU Trade Commissioner slammed US for granting concessions to domestic farmers causing instability in world economy.
Mandelson retorted that the US was hiding behind a 'gigantic great smokescreen' in a bid to 'dodge' its responsibility towards cotton growers in Africa.
Due to the US subsidies, cotton prices are sliding and it is becoming difficult for farmers from the Least Developed countries (LDC) to compete in the world market.
Mandelson said that the in countries like West Africa, cotton farming is the livelihood of people. The future of these countries, and their economic survival depended on farming.
He also warned that such subsidies that affect trade should be dealt with carefully in time, or else the consequences will be harsh.
The US has offered to waive duties paid by the African cotton exporters in an attempt to balance out the subsidies. But the African delegates claimed that since the US manufacturers would not buy their cotton in the first place, the export duties were irrelevant.
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