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Cotton Conflict Resolution Takes A Step Forward

Industry and Congress express support for agreement with Brazil.
Compiled by staff 
Published: Apr 7, 2010

The United States and Brazil have taken a step forward in the cotton dispute. The announcement of the agreement was made Tuesday by United States Trade Representative Ron Kirk and Secretary of Agriculture Tom Vilsack. Ambassador Kirk said a negotiated settlement would avoid the imposition of countermeasures against U.S. trade, including U.S. exports and intellectual property rights. Kirk said this is in the best interest of both the United States and Brazil.

Kirk says as a result of discussions with Brazil the imposition of higher tariffs against hundreds of millions of dollars in U.S. goods exports, which were scheduled to go into effect this week has been avoided.


"I am also pleased that our path forward respects our Farm Bill process and the role of Congress in shaping our commodity programs," Vilsack said. "I look forward to working with Congress and
Brazil to craft a long-term, mutually-agreeable solution to this dispute that meets the needs of American farmers, workers and consumers."

National Cotton Council Chairman Eddie Smith says the
U.S. cotton industry views the agreement between the United States and Brazil as a meaningful way forward for the two countries. He called it a positive development in this very long dispute. Smith points out that the two critical aspects of the agreement are that it avoids the immediately harmful economic effects of trade retaliation and it puts the serious discussion concerning changes in the U.S.
cotton program before Congress in the 2012 farm bill, which is where that discussion belongs.

Senate Agriculture Committee Chairman Blanche Lincoln, D-Ark., said failure to take steps to avoid the imposition of retaliatory tariffs and other countermeasures would make it far more difficult to reach a negotiated resolution in this long-running dispute. She and Ranking Member Saxby Chambliss, R-Ga., issued a joint release saying they look forward to working with Ambassador Kirk and Secretary Vilsack as both sides explore modifications for consideration during the 2012 farm bill process.

House Agriculture Committee Chairman Collin Peterson, D-Minn., and Ranking Member Frank Lucas, R-Okla., also issued their support of the deal, although they did say that they understand that a delay in countermeasures is not a final resolution of the dispute, and they will work closely with officials in USDA and
USTR as discussions on these programs continue.


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