US delays WTO probe into its cotton subsidies

02 Sep, 2006

The United States on Friday exercised its right to delay a World Trade Organisation (WTO) probe into the billions of dollars it pays in subsidies each year to cotton farmers.
Brazil has asked for an investigation into whether Washington has abided by a landmark 2004 verdict in which the WTO ruled that much of the US cotton programme is in violation of trade rules and demanded sweeping reform.
But the WTO allows members to block an initial request for a probe, although a trade panel is automatically set up at the second time of asking. Brazil has not said when it will make its second request.

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