A deadlock within the long-running political battle at the World Trade Organization (WTO) over cotton subsidies is blocking progress for the whole WTO Doha Development Round, diplomats claim.
At the latest Geneva talks on the issue, India, China and Argentina warned "substantial negotiations (over cotton) are deadlocked and there won't be any Doha agreement unless the cotton problem is solved," said a WTO official. The gloomy mood was backed by key African countries opposing cotton production subsidies: Benin, Burkina Faso, Chad and Mali.
A diplomat for Burkina Faso said WTO member governments "are still far from achieving the (previously agreed) objectives ... of treating the distortions in the cotton trade ambitiously, expeditiously and specifically."
He added: "The present rhythm of negotiations does not give ground for optimism."
Notably, the US government -- which has resisted subsidy abolition -- said it would not liberalise without compensatory offers on agricultural market access, domestic support and export assistance.
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