GENEVA, Sept 27: The agricultural systems of the world’s two top trading powers, the European Union and the United States, came under fire on Friday when formal challenges were launched against US and EU subsidies for cotton and sugar production in the World Trade Organisation.

Brazil lodged a complaint with the WTO about Washington’s support measures for US cotton producers and exporters, while its joined forces with Australia to file a similar challenge against the EU sugar subsidies.

In both cases they argue that the support measures have artificially depressed world prices in each commodity.

Although they were separate from negotiations on liberalising global agricultural trade, the Brazilian and Australian steps came as the 144 members wound up a round of talks at WTO headquarters here on how to cut domestic support for farmers.

On Wednesday, during the talks, the US warned that the “clock is ticking” in overall negotiations on reforming agriculture, and complained that its main trading partners had failed to present detailed proposals on cuts in farming subsidies.

The Brazilian and Australian requests for consultations with Washington and Brussels mark the first stage of the WTO’s dispute settlement procedure.

All the parties now have 60 days to see if they can negotiate a bilateral solution to the disputes.

But after that period Brasilia and Canberra can decide if they want to take the issue a step further and ask the WTO to set up a panel of independent experts who would examine and rule on whether the US and EU measures are legal.—AFP