Ruling in blockbuster WTO case vs. the U.S. coming in May.(TRADE)

Kiplinger Agriculture Letter, The, March, 2004

A ruling in a blockbuster WTO case vs. the U.S. is coming in May.

It's likely to go against the U.S., finding that USDA programs designed to support cotton producers violate world trade agreements. A year ago, Brazil challenged all U.S. cotton programs, including crop and disaster payments, processor payments and export credit guarantees. Brazil says the supports exceed maximums agreed to in the Uruguay Round of world trade talks and harm the Latin American country's own exports.

The U.S. is sure to appeal an adverse decision on cotton support, and the government will not easily abandon its existing support programs.

But the ruling will add to mounting pressure on U.S. farm aid, which is widely disliked by other countries and often cited as...