São Paulo – This Wednesday (17th) in Rome, the Brazilian Ministry of Foreign Relations (Itamaraty), the Brazilian Cotton Institute (IBA, in the Portuguese acronym) and the United Nations Food and Agriculture Organization (FAO) signed the project “Strengthening the Cotton Sector through South-South Cooperation.” The goal is to foster the activity in developing countries.
According to information from the Itamaraty, the project will receive US$ 10 million in investment and involves the supply of professionals, technologies and experiences considered relevant to the contemplated countries. Initially, the initiative will cover Latin American nations and Haiti, but in case the funds are not entirely used up, it may be extended to other regions. Implementation will be in charge of the FAO’s regional office in Santiago, Chile.
The funds managed by the IBA originate from compensations paid by the United States for having lost a dispute after Brazil filed a claim at the World Trade Organization (WTO) against government subsidies to American cotton farmers. The payments resulted from an agreement reached by the two governments after the multilateral institution authorized Brazil to retaliate commercially against the USA.
The country is participating in other international cooperation programs for cotton, such as the one developed by the United Nations Development Programme (UNDP) and the IBA to support the sector in African countries, with a budget of US$ 20 million. The IBA has agreed with the Itamaraty to allocated 10% of the funds it earns to international cooperation. There is a budget of US$ 8 million for technical training only.
*Translated by Gabriel Pomerancblum
