- 53 per cent of cotton produced in the world is subsidised (Source: ICAC, 2005)
- In 2002 the combined level of world subsidies reached almost US$6 billion, more than a quarter of the global value of production. This coincided with the worst cotton prices in 30 years, and meant unsubsidised countries found it even more difficult to compete (Source: ICAC, 2004)
- Cotton producing countries that subsidise their domestic industry include the USA, China, Greece, Spain, Turkey, Brazil, Mexico, Egypt and India (Source ICAC, 2005)
- The US Government, for example, sets a target price for cotton, regardless of world price. This leads to an over supply of cotton on the world market as US growers are not influenced by normal supply and demand factors
- In 2005 US taxpayers paid an estimated US$4.2 billion to subsidise their own cotton growers (Source: USDA, 2005)
- Australia’s cotton growers receive no direct government subsidies and are unfairly disadvantaged against overseas growers from subsidised countries
- The Australian cotton industry would benefit significantly if all trade barriers and subsidies were lifted
- Less than 10 per cent of US cotton growers received more than 70 per cent of the US Government handouts in the last ten years (Source: US Environmental Working Group, 2005)
- It has been estimated that if the US Government removed subsidies then Australian raw cotton prices and production would each increase by seven per cent, Australian grower income would rise by 19 per cent, and industry revenue would increase by A$177 million (Source: CRDC, 2001)
- In 2004 Cotton Australia requested the Australian Government to act as a third party in support of Brazil’s ultimately successful World Trade Organisation (WTO) action against the US Government. The Brazilian Government claimed losses to its own cotton industry as a direct result of the US Government’s domestic subsidy program
- In 2005 the WTO ordered the US Government to bring its domestic cotton programs into line with WTO rules
- Trade ministers from 149 member countries at the 6th WTO Ministerial Conference in 2005 agreed for all forms of cotton export subsidies to be eliminated by developed countries in 2006 with total elimination of agricultural export subsidies by 2013
