Trade Issues Trade Issues and the and the

U.S. Cotton IndustryU.S. Cotton Industry

January 2004January 2004Beltwide Cotton ConferencesBeltwide Cotton Conferences

TRADE ISSUESTRADE ISSUESWTOWTO

CAFTACAFTAFTAAFTAA

BilateralsBilateralsBrazilian ChallengeBrazilian Challenge

WTOWTOCancun CollapseCancun Collapse African Initiative African Initiative Singapore IssuesSingapore Issues

US PositionUS Position

WTOWTO African InitiativeAfrican Initiative Singapore IssuesSingapore Issues

US PositionUS Position

WTOWTONCC EffortsNCC EffortsSupport US PositionSupport US PositionDialogue with USTRDialogue with USTRInform CongressInform CongressCounter Adverse MediaCounter Adverse Media

CAFTACAFTATextile Rules of OriginTextile Rules of Origin

Agricultural IssuesAgricultural IssuesCotton TRQCotton TRQ

CAFTACAFTANCC EffortsNCC EffortsAvoid 3Avoid 3rdrd Party Benefits Party BenefitsUnify US Textile VoiceUnify US Textile VoiceEngage USTREngage USTRDialogue with CentralsDialogue with Centrals

Million Bale Equivalents

0

4

8

12

16

20

95 96 97 98 99 00 01 02 03

RoW CBI NAFTA

U.S. Cotton Product Imports

Million Bale Equivalents

0

3

6

9

12

15

95 96 97 98 99 00 01 02 03

Domestic Exports

U.S. Cotton Mill Use

FTAAFTAATextile Rules of OriginTextile Rules of Origin

Agricultural IssuesAgricultural IssuesCotton TRQCotton TRQ

FTAAFTAANCC EffortsNCC EffortsAvoid 3Avoid 3rdrd Party Benefits Party BenefitsStudy of IndustryStudy of IndustryAnalyze Brazil PotentialAnalyze Brazil Potential

BilateralsBilateralsPart of Larger StrategyPart of Larger StrategyIndividually EvaluatedIndividually Evaluated

BilateralsBilateralsAustraliaAustraliaMoroccoMoroccoBahrainBahrainDominican RepublicDominican RepublicPanamaPanamaColumbiaColumbia PeruPeruEcuadorEcuador BoliviaBoliviaThailand

Brazilian ChallengeBrazilian ChallengePeace ClausePeace Clause

Serious PrejudiceSerious PrejudiceStep 2Step 2

Export Credit (GSM)Export Credit (GSM)

Brazilians UsingBrazilians UsingUS economistsUS economists Dan Sumner, Univ. of CA-DavisDan Sumner, Univ. of CA-DavisBruce Babcock, Iowa State Bruce Babcock, Iowa State Univ./CARDUniv./CARDUS lawyersUS lawyersSidley & Austin, DC firmSidley & Austin, DC firm

Brazilian ClaimsBrazilian ClaimsNo Decoupled Programs No Decoupled Programs Producers Protect BaseProducers Protect BaseCrop Ins. Distorts PlantingCrop Ins. Distorts PlantingHigh Cost ProducerHigh Cost ProducerMarket Share GrabMarket Share GrabDepresses PricesDepresses Prices

Brazilian ChallengeBrazilian ChallengeNCC EffortsNCC EffortsClose Cooperation with USTR Close Cooperation with USTR and USDA in Defense and USDA in Defense Legal and Strategic ConsultationsLegal and Strategic ConsultationsProgram Knowledge and Program Knowledge and Modeling Expertise Critical Modeling Expertise Critical to to Effective RebuttalsEffective Rebuttals

MerchantsGinners CrushersProducers

Cooperatives

WarehousesManufacturers