The New US Agriculture Act Benefits Cotton And Woolen Garments.

New for 5 years Agriculture bill It is good for local cotton and woolen garment manufacturers and textile producers in the United States, but will end direct subsidies to cotton growers.

The US House of Representatives approved the new agriculture bill in January 29th, and the US Congress passed the bill in February 4th. It will take effect after the signing of President Obama.

The bill will abolish direct subsidies to agriculture, and cotton subsidies have long been controversial in Brazil. Before the World Trade Organization (WTO), it was ruled that subsidies to cotton farmers in the United States were illegal.

However, due to Cotton fabric The tariff is higher than that of a specific cotton garment. In order to reduce the harm to local manufacturers, the new bill provides a Pima agricultural cotton Trust Fund for a period of 5 years and 16 million dollars.

From 2014 to 2018, subsidies will be provided annually, of which 25% of the funds will be provided to national associations to enhance the use of Pima cotton in textiles and clothing.

The other 25% will subsidize the production of Pima for ring spinning in the US. cotton The other 50% are the manufacturers who cut and sew cotton shirts in the United States and use imported cotton for 2013 years.

The national cotton Federation (NCC) said it was a big concession and deviated from its previous plan. It also believed that this was an important step towards reaching Brazil's final solution to the US Cotton Subsidy Issue to WTO.

Since WTO ruled that the US cotton subsidy law was illegal in 2009, Brazil is eligible to levy a retaliatory duty of $830 million on US goods. However, Brazil did not take this measure. Part of the plateau was due to the fact that the United States paid $147 million 300 thousand a year to Brazil farmers (until 2013), and it was also expected that the new US agricultural law could remove cotton subsidies for a long time.

Whether the new agricultural law can relieve Brazil's concerns remains to be seen.

Woolen garments and textile manufacturers also benefited from the new agricultural law. Because of the high tariffs on wool fabrics and the high tariffs on woollen garments, the new "agricultural wool garments manufacturer trust fund" should be shipped to the US $30 million to reduce damage to local manufacturers.

Another subsidy is $2 million 250 thousand per year (2019) for wool research and extension.