The US government should ask the World Trade Organisation (WTO) for a compliance panel to evaluate whether changes made to the US export credit guarantee program comply with trade rules, cotton farmers and allied groups said on Wednesday. They are concerned about a WTO ruling released on Monday that set conditions for how Brazil can retaliate against the United States over cotton subsidies, including the GSM-102 export credit guarantee program.
Brazil and other cotton producers have long blamed US cotton subsidies for depressing world prices, but US farmers protest they have slashed production and exports in recent years, and blame India and China with pressuring markets. The WTO ruling failed to recognise changes made since 2005, the groups said, noting fees charged to participants in the program in 2010 will more than offset the costs of the program - including any credit losses - by a projected $54 million.
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