WTO probes US cotton subsidies

news.ft.com By Frances Williams Published: March 19 2003 4:00 | Last Updated: March 19 2003 4:00

The World Trade Organisation yesterday set up a dispute panel to investigate Brazil's complaint that US cotton subsidies worth nearly $4bn (£2.54bn) a year are illegal under international trade rules.

Brazil says the subsidies are squeezing its exports in world markets and depressing world prices, costing Brazilian cotton farmers $640m last year in lost foreign earnings. India, Pakistan, China, Taiwan, Argentina and Venezuela, as well as Canada and the European Union, yesterday asked to be third parties in the case. www.wto.org Frances Williams, Geneva