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US WON'T ALTER WTO COTTON POSITION

WASHINGTON, DC - The US will not alter its position on agriculture in free-trade discussions at the World Trade Organization despite a WTO that US cotton subsidies violate existing rules. 
The US has said it would appeal a WTO decision that US cotton subsidies are unfair under global trade rules, in a case brought by Brazil.

Although some countries see the cotton case as a first step toward curbing farming subsidies in wealthy countries, Johnson said the case still faces appeal and that negotiations on overall subsidies are continuing.

The 147 WTO member countries are trying to strike a deal on re-launching current round of trade liberalization talks before the end of July, although the negotiations have bogged down over divisions between rich and poor countries on agriculture.

The US said it is willing to end export credits that the European Union says are the same as export subsidies if it is done under an overall deal in WTO talks.

CUBA, US AGRICULTURE TRADE EXPANDS

HAVANA, Cuba - Cuba has bought its first shipment of US durum wheat in more than three decades, according to the US Agriculture Department (USDA), which said the sale is "a sign of Cuba's growing commercial food ties to the United States."

The USDA's weekly export report showed Cuba bought 5,300 ton of US-grown durum wheat - used mainly in pasta products - during the week ending June 17.

It was the first such purchase since federal reporting began in 1973 and makes Cuba the biggest buyer of US wheat. The island nation has purchased a total of 190,900 tons of all varieties of US wheat so far in the 2004/05 marketing year, which began June 1, according to the USDA.

Cuba imported 800,000 ton of foreign wheat and wheat flour in the 2003/04 marketing year, according to USDA estimates.

Historically, Cuba has turned to the European Union, Canada and Argentina for much of its wheat supply. But since 2001, Cuba has spent about $300 million on US grains, meat, and other farm goods, the USDA says.

The US-Cuba Trade and Economic Council, which tracks American business with Cuba, says US sales have totaled $573 million.

US farm groups have unsuccessfully pushed the Bush Administration to relax economic sanctions against Cuba and allow government-backed financing of commodity sales.

"If you open free market forces, Cuba has the potential to be a billion dollar market for US agriculture products," said Bill Kost, a Cuba expert with USDA's Economic Research Service.

NAFTA PARTNERS AGREE ON LIVE CATTLE RULES

MEXICO CITY, Mexico - The US, Mexico, and Canada have reached an agreement on tightening animal health rules, opening the way for a possible resumption of trade in live cattle between the three countries. 

The trade in live cattle was halted following the outbreak of "mad cow" disease in both the US and Canada last year.

Mexico was the world's No. 2 importer of US beef, buying $1 billion worth of live cattle and meat every year, but it banned the import of US beef products last December after a case of mad cow disease appeared in Washington state.

The ban was eased in March to allow most US beef products - mainly de-boned beef from animals under 30 months old and veal from cattle nine months of age or younger - back into Mexico. But trade in live cattle is still suspended, pending the implementation of new health rules.
 
US Agriculture Secretary Ann Veneman said in April her agency was reviewing some 3,300 comments submitted on a proposal to reopen the US border to live Canadian cattle, but could not say when a final decision would be made.

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