04-27-04

AG TRADE ECONOMIST AVAILABLE TO DISCUSS IMPLICATIONS OF W.T.O. RULING ON COTTON SUBSIDIES

In a preliminary ruling yesterday, the World Trade Organization decided United States' government subsidies to cottonfarmers are in violation of international trade rules. The decision could lead to stringent fines for the U.S. or lowersubsidies for crop farmers. A final decision on the case, which was brought forth by Brazil, will be made in June.Third World nations contend that U.S. and European farm subsidies undermine their prospects for successfully tradingagricultural products on the world market, says John Beghin, professor of economics and head of the Food andAgricultural Policy Research Institute at Iowa State University. "The W.T.O. rule against U.S. cotton subsidies is animportant victory for developing economies in their quest to level the playing field in world markets," he says. Beghinis available to comment on the implications of the W.T.O. ruling. He is an expert in trade and agricultural policy andthe political economy of agricultural and food policies in developing economies. He can be reached at (515) 294-5811,orbeghin@iastate.edu.

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