April 9, 2001

National Cotton Council Chairman James Echols says the latest Export Credit Guarantee Program proposals being considered in international negotiations would make the GSM 102 program "ineffective" for U.S. cotton and other commodity exports.

In a letter to Agriculture Secretary Ann Veneman, Echols estimated that proposals being considered within Organization for Economic Cooperation and Development (OECD) could reduce annual U.S. cotton exports around 500,000 bales annually and have a detrimental impact on prices as well.

Citing concerns over increased fees, shortened terms and restrictive repayment requirements, Echols said, "As currently structured, the OECD agreement appears to undermine a central export program of the United States while providing no corresponding reductions in subsidy programs operated by our competitors. This result would place the United States at a disadvantage entering another round of multilateral agricultural trade negotiations."