As implementation of the 2014 farm law continues, the National Cotton Council (NCC) reminds industry members of the obstacles that were overcome in order to maintain effective risk management tools in that law. Even before the Agricultural Act of 2014was being developed, cotton was the only commodity facing the consequences of an adverse ruling by the World Trade Organization (WTO) - specifically a finding against the U.S. cotton program in a case brought by Brazil. Following a 2009 ruling by an arbitration panel authorizing Brazil to impose more than $800 million in trade retaliation, the U.S. and Brazilian governments signed a "Framework Agreement" under which Brazil agreed to delay retaliation against U.S. products during the development of the2014 farm bill. Brazil also indicated that a mutually agreed outcome in that bill would provide a long-term settlement in the WTO case.
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