US scraps cotton subsidies
Afp, Washington
The US government said Wednesday it had repealed an illegal cotton subsidy programme that had drawn the threat of billions of dollars in sanctions from Brazil. The formal repeal of the so-called "Step 2" programme of support for US cotton growers took effect on Tuesday, after it was abolished in a new trade act signed by President George W. Bush in February. Its annulment came after the World Trade Organisation, acting on a complaint by Brazil, ruled in March 2005 that Step 2 violated trade rules because it gave US exporters an unfair advantage on the global market. "This action demonstrates the strong US commitment to abiding by its WTO obligations and reflects US support for the rules-based trading system," US Trade Representative Susan Schwab said in a statement. "I appreciate that the administration and Congress could work together to address this issue," she said.
| 
