Article: U.S. PLANS TO CANCEL COTTON SUBSIDIES.(agricultural subsidies)

Byline: Evan Clark

WASHINGTON-The Bush administration moved last week to cancel a program that has supported U.S. cotton growers and yarn spinners with millions of dollars of government subsidies and has been ruled illegal by the World Trade Organization.

Congress must first approve the repeal of the program, a crucial part of the farm initiative referred to as Step 2, and opposition can be expected from lawmakers representing agriculture-heavy districts. Step 2 subsidies are triggered when world cotton prices fall below a certain level.

The administration also proposed the removal of a 1 percent cap on fees that can be charged under ...

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