Burkina Faso: Cotton Producers Celebrate WTO Ruling Against US Subsidies

A new ruling by the World Trade Organization condemns the US system of agricultural subsidies to cotton farmers and could lead to sanctions costing billions, if the payments are not terminated. Many Africans celebrate the ruling; according to estimates by the aid group Oxfam, the end of American subsidies could drive the price of cotton up by as much as 14 percent, leading to a modest increase in income for millions of African cash-crop farmers. The enthusiasm in Burkina Faso, Brazil and other cotton-producing nations is representative of the great passions that US farm subsidies excite, with many developing nations regarding them as unfair. The US, on the other hand, argues that subsidies are necessary for many Western farmers and provide consumers worldwide cheap cotton and textiles. US farmers apply immense pressure on political leaders to maintain the subsidies, and the developing nations do not expect an immediate jump in farming incomes. If the US balks about complying with the WTO ruling, questions will emerge about the relevance of international organizations today. – YaleGlobal