WTO Not Able To Stop Cotton Subsidies Paid By Rich Countries

The World Trade Organisation (WTO) has not been able to address the issue of reducing cotton subsidies provided by rich countries to their farmers

The WTO has not been able to do so despite a decision taken at the Hong Kong Ministerial Meeting in 2005 to reduce cotton subsidies immediately.

The cotton subsidies paid by rich countries to their farmers enables them to export cotton at lower rates.

“However cotton farmers in Africa and other developing countries suffer as they are not able to supply cotton at those uncompetitive rates. This is making farmers poorer in those countries,” The Hindu reported.

The massive subsidies given to famers from countries like the US are creating an artificial competitive advantage for farmers of the developing and least developed countries.

The US may not be the biggest producer of cotton, but it is still the biggest exporter, exporting around 90 percent of its cotton and accounting for a worldwide share of 28 percent.

The average holding of a US cotton farmer is around 624 hectares, which compares unfavourably with 1-4 hectares in the African countries and even India and China.