Speedy Resolution Not Expected on WTO Ruling

Following the World Trade Organization ruling on U.S. cotton subsidies, Dr. Jim Novak, Alabama Cooperative Extension System economist, has been trying to get a handle on what effect this decision ultimately will have on the U.S. cotton industry.

The good news: It may be a year before a settlement is in place, providing the initial ruling is not contested. If appealed, the dispute may take as long as 15 months to resolve. But that’s an optimistic project, Novak says. The case involving a gas dispute between the U.S. and Venezuela, for example, took almost 3 years to resolve.

One thing seems certain: U.S. policymakers do not intend to go gently into the night. Yesterday, the House Committee on Agriculture held a hearing on trade negotiations, receiving pledges from USDA Secretary Ann Veneman and U.S. Trade Representative Robert Zoellick that they will pursue all possible appeals of the case. Both officials said they want to assure that the U.S. farm programs remain as they were designed to be, adding that these programs are fully consistent with WTO obligations.

It is a view shared by House Ag Committee Chairman Bob Goodlatte:

"Changes to countries' agricultural policies should come through the give and take of negotiations, not through decisions that do not appear based on WTO rules," Goodlatte said. "World trade in agriculture is highly competitive and barriers, such as high tariffs are rampant. Countries regularly deny access for U.S. agricultural products for many reasons, including non-scientific barriers for U.S. beef, grains and fruits and vegetables. I have repeatedly said that gaining access for U.S. agricultural products is the most important objective of the ongoing WTO negotiations."

Posted by Jim Langcuster at April 29, 2004 09:57 AM | TrackBack