Wisconsin Ag Connection - Rep. Kind Slams Brazil Cotton Deal

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Rep. Kind Slams Brazil Cotton Deal
Wisconsin Ag Connection - 10/02/2014

Wisconsin Congressman Ron Kind says he is outraged over an agreement reached between the United States and Brazil regarding World Trade Organization compliance in the cotton industry. The La Crosse Democrat says the deal resulted is a $300 million payout made to Brazilian cotton farmers.

"Our annual payoffs to Brazilian cotton farmers should have been eliminated long ago, but we're sending them a $300 million payment instead," said Rep. Kind. "I pushed to resolve this mess when Congress was debating the last farm bill, but Congress didn't act and now we are left with a bad deal that's paid for by American taxpayers."

The terms of the deal include a one-time payment of $300 million to the Brazilian cotton industry, a requirement that Brazil consult with the U.S. before moving to the WTO in the future, and a promise of no further WTO litigation through 2018. But the agreement is only operational for the duration of the current farm bill, and leaves the U.S. open to claims made from outside the cotton industry.

Kind says payments to the Brazilian cotton industry have been occurring for years. In 2008, Brazil argued to the WTO that U.S. agriculture subsidies to cotton producers violated WTO agreements.

The congressman says we need to get our house in order and reform our subsidies programs in their entirety.

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