FELIX BLOSSIER
U.S. cotton production is supported by heavy subsidies, averaging upwards of US$ 3.5 billion per year. This governmental aid measure is seen as an “important safety net” by the National Cotton Council of America; the views of the Brazilian government and numerous developing countries are radically different and tend to be far less serene on the issue.
Washington’s production support program allows American farmers to produce cotton at a lower cost and, therefore, to sell it at cheaper prices. As a result, the world price of cotton tends to head downward and the share of U.S. cotton exports increases at the expense of producers from developing countries whose governments do not have the resources to offer subsidies.
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