US Congress eliminates disputed cotton subsidies

0 Comments | AFP, February, 2006

WASHINGTON (AFP) — The US Congress passed legislation ending cotton export subsidies that had been condemned by the World Trade Organization, the US Trade Representative's office said.

The House of Representatives voted for the legislation, which had passed the Senate late last year. President George W. Bush must now sign the bill into law.

The WTO approved a text at its Hong Kong meeting in December saying all export subsidies on cotton in developed countries should be removed in 2006.

Brazil had complained to the WTO over Washington's cotton subsidies, but the South American country agreed in July to delay sanctions to allow US lawmakers to pass the legislation.

"Repeal of this program addresses two important trade priorities. It implements...