Social movements have long criticized the World Trade
Organization (WTO) and its predecessor, the General Agreement on Tariffs and
Trade (GATT), where rich countries consolidate power and rig trade rules in
their favor, at the expense of the developing world. Perhaps the best example
of this is the issue of cotton subsidies. The US chooses to protect the
interests of 20,000 rich cotton growers at the expense of the lives and
livelihoods of millions of farmers and their children in West Africa.
Cotton is a major source of livelihoods for poor farmers in
the West African countries of Burkina Faso, Mali, Benin and Chad, known in WTO
negotiations as the Cotton 4 (C-4). They have been feeling the direct impact of
the subsidies provided to cotton growers in the United States, which suppress
cotton prices and result in lower incomes for African cotton farmers. Over a
decade ago, the US agreed to resolve the issue of cotton subsidies
'ambitiously, expeditiously and particularly'. But the US did not take action.
Instead, it took advantage of its financial and political power, choosing to
ignore the impacts it was having on the lives of some of the poorest people on
the planet. Even a case brought by Brazil at the WTO, could not stop the US
from artificially suppressing cotton prices. And at this year's talks, the US
refuses to even discuss the issue of cotton.
In fact, Brazil won a case against the US cotton subsidies
at the WTO, yet the richest country in the world is successfully playing with
the rules. While promoting itself as WTO compliant, the US supports its cotton
growers to the tune of $1.5 billion annually as estimated by International
Centre for Trade and Sustainable Development. This suppresses world cotton
prices at least by 7% - or a loss of $3.3 billion for cotton producing
countries. Among them are the four poorest countries in West Africa, which will
lose $80 million per year.
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