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COA Meeting start date 07/06/2016
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Brazil is concerned with the announcement on 6 June 2016 that the United States will implement a "new Cotton Ginning Cost-Share programme". Brazil will look into the programme's technical details, but Brazil's first assessment of its design seems to indicate that this is a new trade distorting domestic support measure with potential impacts to international cotton prices. Brazil expects that expenditures under this programme are compatible with multilateral trade commitments of the United States in the WTO. Brazil hopes to receive additional information about this new programme in the coming days and encourage the United States to notify this policy change to the Committee on Agriculture in accordance with Article 18 of the Agreement on Agriculture.
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On 6 June 2016, USDA announced the Cotton Ginning Cost-Share programme, which provides cost-share assistance payments to cotton producers. Cotton ginning is a necessary requirement for producers to market the lint for fibre or the seed for oil or feed. Through the Cotton Ginning Cost-Share programme, eligible producers can receive a one-time cost share payment in 2016, which is based on a producer's past plantings (i.e., 2015 cotton planted acres) and 40% of the average ginning cost in each of the four production regions. The programme is limited in scope by payment caps and eligibility requirements for producers.

Any payments under the programme will be based on the 2015 cotton plantings and are not connected to either current or future production. Sign-up for U.S. producers began on 20 June and will run through 5 August 2016.

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Question Summary
U.S. New Cotton Ginning Cost Share programme
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