African cotton growers suffer by US cotton subsidies
11 Sep '06
1 min read
Industry and Trade Minister of Benin stated that the US should not provide subsidies to local cotton producers as it is causing lots of harm to over 20 million African cotton farmers.
The US has provided subsidy of $4 billion to 25,000 American cotton producers in 2004-05, which lowers down global cotton prices and ruins economy of cotton dependent countries like Mali, Chad, Burkina Faso and Benin.
The United States and EU countries force developing countries to import manufactured goods if they want them to import farm products.
US cotton subsidies to local cotton producers distort farm tariffs and G20 nations decided to tackle this issue from trade and development viewpoint.
African cotton producers alleged that the US is not keeping its promise of reducing farm subsidies which was announced at a WTO ministerial meeting in Hong Kong in December.
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