West’s Billions in Subsidy Shut Out African Cotton Growers

Large subsidies for domestic cotton production in Western countries hurt African farmers trying to sell cotton and escape poverty. The United States and the European Union have given more than $32 billion over the past decade to support their farmers, with the EU subsidies more per pound than the crop’s market price. China, the world’s largest producer, spent $15.4 billion on subsidies since 2001. Finalizing the Doha round – a global promise from the World Trade Organization to assist the world’s poorest nations with purchases of agriculture products – remains deadlocked due to disagreement over the subsidies. The subsidies cost Benin, Burkina Faso, Chad and Mali – among Africa’s largest producers and poorest countries – $247 million a year in lost export revenue. Cotton prices have surged since the summer due to floods in China and Pakistan and poor weather in the US. Fearing the sting of future subsidies and abrupt price drops, African farmers hesitate to increase production. – YaleGlobal