World Trade Organization chief Pascal Lamy on Thursday said further liberalization of the global trade in cotton was needed and that the United States' failure to comply with a recent ruling was «part of the problem» in improving trading conditions for developing countries, AP reported. A day after Brazil said it would seek final WTO permission to retaliate for illegal U.S. cotton subsidies, Lamy told a session of the U.N. Conference on Trade and Development that cotton was «of particular concern» for developing countries. He said WTO members, and specifically the United States, would have to work toward finding ways to eliminate export subsidies and slash trade-distorting farm support. «Part of the (cotton) problem lies in the WTO and will be addressed as part of the agriculture negotiations,» Lamy said. «Another part relates to the implementation of the recent panel decision by the U.S.»
