Pointing to the continued unfounded challenges by West African representatives that US cotton subsidies are responsible for poverty in Africa, Eastland stated that, “Today, a Brazilian or Australian cotton farmer can sell cotton for 50 cents per pound while the West African farmer receives 32 cents per pound.
This differential does not arise as a result of any US safety net program.
Rather, it exists from the vestiges of European colonial institutions that must be reformed by African leaders.
The West African farmer has virtually no choices when acquiring inputs or selling the product of their efforts.
The situation is now bearing down on West African farmers in the forms of significantly lower cotton yields, higher costs and lower returns.”
Eastland also noted the impact of all subsidies from all countries has been independently analyzed.
“Recent studies from respected international organizations such as the International Monetary Fund and the Food and Agriculture Organization of the United Nations have concluded that the cumulative effect of all subsidies by all countries amounts to as little as 2 percent to 4 percent price suppression in the world cotton market,” Eastland said.
“Additionally, these studies note that improved market access is the vehicle for significant economic gains.”
Concerning the WTO agricultural negotiations, Chairman Eastland said, “The US has tabled an aggressive, comprehensive proposal that significantly reduces trade distorting domestic support while opening world markets for agricultural products.
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