New York Times | By Elizabeth Becker | Sept. 12, 2003
CANCUN, Mexico, Sept. 11 - The director general of the World Trade Organization said today that he would intervene to address the grievances of four poor African nations whose cotton farmers have been hurt by rich nations' farm subsidies.
The official, Supachai Panitchpakdi, a Thai economist, broke out of conventional neutrality during the opening of world trade talks here, telling delegates there was merit in the complaint of the leaders of Benin, Mali, Chad and Burkina Faso.
Cotton has become a potent symbol of the inequities of the world's agricultural system. It is one of most heavily subsidized crops in the world's richest nations, which helps keep the global price low.
African leaders say that their farmers cannot compete with the global price - which can fall below cost - and that they are being driven out of the market and off the land.
"Millions of peasants have failed, and without a solution today we will fall further into misery," Fatiou Akplogan, Benin's minister of commerce, said at a news conference.
Saying that their heads of state consider cotton subsidies a "grave" threat to their national security, the African ministers said cotton provided them with 10 percent of their gross domestic product, 40 percent of their exports and 70 percent of their agricultural exports.
"It is not possible for us to leave here without a resolution," Mr. Akplogan said.
In the United States, cotton farmers received $3 billion last year - over $200 an acre. The vast bulk of their cotton is exported, prompting accusations from African and South American countries that the subsidies amount to an unfair trading practice.
Europe gives nearly $1 billion in subsidies to cotton farmers, mostly in Greece and Spain.
The four African countries have asked for $300 million in immediate compensation for losses they are suffering on the world market. They hope to win reductions in cotton subsidies by the wealthy nations, on the road to their eventual elimination.
While the four declined to single out a country that might be asked to pay compensation, trade officials say that demand is directed at the United States.
The United States has held several private meetings with the African leaders. Peter Allgeier, the deputy United States trade representative, said he welcomed the offer of Director General Supachai to "use his good offices and find a resolution."
A new, powerful bloc of developing nations known as the Group of 21 is pressing the trade organization to give equal weight to its farm proposals, which would require deeper cuts in wealthy nations' subsidies and lowering of trade barriers. In response, the United States has said trade negotiations are a two-way street and require compromises by all parties.
Brazil has already brought charges of unfair trading practices against the United Sates for its cotton subsidies.
"There is no other American crop that causes more chaos and misery around the world," said Ken Cook, president of the Environmental Working Group, which collects and analyzes data on American subsidies.
In the past several years, developing countries have dropped barriers and opened their markets in the belief that free trade, not reliance on handouts, is the best way to climb out of poverty.New York Times:
