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Food stamps or farmers.

Publication: Knight-Ridder Tribune Business News
Publication Date: 07-AUG-05
Format: Online - approximately 1403 words
Delivery: Immediate Online Access

Article Excerpt
Byline: Bill Lambrecht

Aug. 7--WASHINGTON -- Missouri rice grower Sonny Martin knew from e-mails that Uruguay planned to file a case in the World Trade Organization charging that U.S. subsidies to rice growers hurt farmers in developing countries.

Until recently, it would have been like a fly annoying an elephant for a tiny country such as Uruguay, population 3.4 million, to take on the U.S. farm establishment. But South American countries are 2-for-2 recently in WTO challenges, and one of the victories will take a bite out of Bootheel cotton profits.

Uruguay's envoy to the WTO announced July 26 that his country had made the decision to file a complaint against the United States but didn't say when the case would formally be brought. The United States has an opportunity to negotiate before a dispute settlement panel is named.

Uruguay has not spelled out the grounds on which the case would be based. But the envoy said it would resemble Brazil's successful cotton challenge, which ended with the WTO ruling in March that American subsidies illegally encouraged overproduction and in turn lowered prices around the world.

Now farmers like Martin wait uneasily to see how Congress responds to a key test on subsidies. Next month, lawmakers have to decide...

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