“I would note that the U.S. actions taken to comply with the WTO Panel ruling have had a significant impact on the U.S. cotton industry,” Pucheu said. “The loss of Step 2 has reduced U.S. competitiveness in international markets and ultimately impacted the producer through lower equity offers."
"In addition, the current world market situation flies in the face of Brazil's claims. During the 2006 marketing year, India was undercutting world prices by as much as 5 cents per pound; Brazil was selling government stocks to dampen domestic cotton prices; and China was using its variable levy system to increase internal prices and stimulate production. It cannot be credibly argued that the U.S. cotton program is causing any country serious prejudice in 2007 - the first year the cotton program has operated without Step 2.”
Pucheu also reminded attendees that the NCC has been actively communicating with the Administration regarding texts that have emanated from WTO agricultural negotiations. That included a recent draft text to which the NCC urged “the Administration to strongly oppose the cotton-specific language and not accept any agreement containing similar language.”
Throughout this year, Pucheu said the NCC has been delivering a consistent message to U.S. trade negotiators that “first and foremost, the U.S. should not improve its offer until other countries agree to meet the U.S. offer on market access. We also have detailed our industry's priorities on market access and pointed out that a successful Doha outcome must include significant increases in market access to China.”
Pucheu, in noting the importance of strengthening U.S. cotton's relationship with China, announced the NCC's hosting of a Chinese delegation in September to all four Cotton Belt regions as part of its Memorandum of Understanding it signed with the China Cotton Association last year. The upcoming visit follows a recent U.S. industry delegation visit to China, which included meetings with many mill customers of U.S. cotton and with regional representatives of China's fiber inspection agency.
National Cotton Council of America
marketing@alchempro.com
