Blaming America's cotton farmers

Times:

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After four consecutive years of plummeting prices on the world market, the industry that provides the backbone to West African economies is now on the brink of collapse.

The cotton market, which provides nearly 70 per cent of impoverished Burkina Faso’s cash exports and income for more than a quarter of its 13 million people, has been brought to breaking point by factors known locally as “the monster with three heads”: a weak dollar, low world prices and US cotton subsidies.

This year will be crucial for the futures of 10 million West African farmers as the US rene-gotiates its Farm Bill, which has attracted international condemnation.

America’s 25,000 cotton farmers receive subsidies totalling some $4bn, allowing them to undercut their developing competitors. The subsidies were ruled illegal by the World Trade Organisation three years ago, yet only 10 per cent have been dropped so far, and Washington still pays many times more in subsidies to these farmers than it gives in aid to Africa each year. As a result, world cotton prices are now at the lowest since the Great Depression of the 1930s.

Global trade talks have also stalled since West Africa’s four main cotton-producers — Burkina Faso, Mali, Chad and Benin — demanded fair trading conditions for farmers who earn barely enough to cover production costs.

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Mr Traoré urged the architects of the new US Farm Bill to eliminate the subsidy programme. He said: “I do not like to go back over history, but I cannot help but remember that bad relations began with America when they came to Africa to take slaves for their own cotton plantations. This is an opportunity to improve that negative image, and alleviate the suffering of millions.”

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It probably did not occur to Mr. Traore that some of those former slaves are getting the subsidy. Nor does the story mention that President Bush has offered to remove all subsidies and tariffs if other countries do the same. The big problem is the EU of which the UK is a member. They will not consider giving up their subsidies.

However, even without the subsidies, the US farmer will probably still be more efficient.