The national cotton Commission issued a statement on Monday that WTO ruled on the US cotton trade dispute in Brazil, ruling that the US cotton subsidy is out of the current market situation.

The WTO ruling panel, composed of three judges, insisted on earlier ruling that the US subsidies were unfair to help us cotton farmers sell cotton at below the price of foreign competitors.

The National Cotton Council of the United States says this is not the case at all. At present, the world's cotton prices are depressed or suppressed, not because of the payment provided by the US cotton arrangement.

WTO compliance with the adjudication panel has not taken into account the initial ruling in 2004, and the US cotton arrangement has changed appropriately.

The United States has taken obvious measures to comply with the original ruling, including the abolition of the controversial Step 2 cotton arrangement.

According to the 2008 agricultural law, the average subsidized loans of American cotton growers will be reduced.

The new agriculture law also includes compelling adjustment of income inspection, and some cotton farmers will not be eligible for the benefits of cotton arrangement.

The US Cotton Council said that world cotton prices have been steadily improving since the WTO ruling panel made a decision against US cotton.

Cotton production in Brazil and other countries, such as India, has been expanding over the past four years, while cotton production in the United States is decreasing.