United States Of America : African Nations Seeks Immediate Action Over Cotton Subsidy Issue

During the upcoming World Trade Organization meeting from September 10-14 in Cancun, Mexico a demand by nearly 20 African nations that the United States and the European Union agree to eliminate cotton subsidies could throw a wrench. African nations are seeking immediate action on the issue at the WTO meeting.

"We''ll have to see how that plays out, but that is not really realistic to have one particular product that is taken out of the mix and addressed before the close of negotiations," the official said.

The current round of world trade talks is targeted for conclusion by January 2005. Heading into next week''s meeting in Cancun, countries remain divided on a number of key issues, including agricultural trade reform.

African countries complain that massive U.S. and European Union subsidies have injured African farmers by depressing prices and stealing export opportunities.

They are pressing the two big powers to agree to a firm timetable for dismantling subsidies and compensating African producers while that process is under way.

A recent study by Oxfam, a leading private sector development group, blamed the United States for the bulk of the pain inflicted on West and Central African cotton producers like Burkina Faso, Mali and Benin.

The group estimated U.S. cotton subsidies cost African farmers about $301 million in the 2001-02 crop year.

U.S. cotton producers have rejected the claim. They contend that market building activities funded by U.S. producers have supported world prices by boosting demand.

Preferential trade benefits also have given African cotton farmers a bigger slice of the U.S. cotton market, they said.