Cotton And Wool Will Benefit From The New US Agriculture Act.

The new agriculture act of < p > for 5 years is beneficial to the local cotton and woolen garment manufacturers in the United States and the "a target=" _blank "href=" //www.sjfzxm.com/ "textile" /a "producer, but will end the direct subsidy to cotton farmers.

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< p > 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.

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The "P" bill will abolish the direct subsidy to agriculture, while the "a href=" //www.sjfzxm.com/news/index_c.asp "cotton > /a" subsidy has long been controversial in Brazil. Before the World Trade Organization (WTO) has ruled that the US subsidized cotton farmers are illegal.

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< p > however, because the tariff of cotton fabric 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.

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< p > subsidies are provided annually from 2014 to 2018. 25% of the funds will be provided to national associations to enhance the use of Pima cotton in textiles and clothing.

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

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"P", the national cotton Federation (NCC), said that this is a big concession and deviated from the previous plan. At the same time, it is believed that this is an important step in reaching Brazil's final solution to the US Cotton Subsidy Issue to WTO.

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< p > since 2009 when WTO ruled that the US cotton subsidy law was illegal, Brazil would be 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.

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< p > it remains to be seen whether the new agricultural law can relieve Brazil's concerns.

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< p > woolen garments and textile manufacturers also benefited from this new agricultural law. Because of the high tariffs on woolen garments, which are less than a target= "_blank" href= "//www.sjfzxm.com/" > cloth < /a >, in order to reduce the harm to local manufacturers, up to 30 million US dollars, the new "agricultural wool clothing manufacturers trust fund" came into being.

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< p > another subsidy is $2 million 250 thousand per year (up to 2019) for wool research and extension.

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