The Dispute Over Agricultural Trade Liberalization Between...

In 2002, a dispute over agricultural trade liberalization between the United States and Brazil arose. Brazil filed a lawsuit against the United Stated in the World Trade Organization Dispute (WTO) Settlement System arguing that the subsidies the United States provided to US farmers violated WTO trade agreements and gave US farmers unfair advantages (Unit 7, lesson 5). Fortunately for Brazil, the World Trade Organization agreed with their claim and authorized them to take â€Å"punitive measures against the United States† (Cengage unit 7, 3). As a result of that authorization, Brazil decided â€Å"to impose tariffs and lift patent protections on US goods† (Cengage unit 7, 3). In order to limit the damage that could have been created by Brazil’s actions, the United States had to make a smart move. As a matter of fact, they decided to provide cottons to Brazilians rather than removing the subsidies. Over 150 Million in subsidies have been provided to the Brazilians , in 2010 so that Brazil do not impose punitive measures (Cengage unit 7, 3). There exists both, pros and cons for subsidizing U.S. farmers. In fact, US farmer strongly support subsidies claiming that it gives the US an important industry and helps the regulations. However, subsidizing US farmers has some consequences. The cons argue that â€Å"subsidies provided to US agricultural producers create inefficiency in the global economy† (unit 7). Also, according to economists, subsidizing stands in the way of the economy growthShow MoreRelatedCase Analysis: Brazil’s Wto Cotton Case: Negotiation Through Litigation2248 Words   |  9 Pagesconcessions are granted in agricultural products, the most highly subsidized industry in the West. Starting in 2003 however and starting with the efforts of Brazil’s Pedro de Caramago, developing countries began to take a more aggressive and mobilized stance against EU and American subsidization of agricultural products. As a result, the 2nd Doha Rounds in 2006 will be convened to deal specifically with the issue of the overall liberalization of global agricultural markets. However, the degreeRead MoreThe Case For Continued Agricultural Trade Liberalization1403 Words   |  6 PagesThe Case for Continued Agricultural Trade Liberalization Alan Blinder once wrote, â€Å"Economists have the least influence on policy where they know the most and are most agreed; they have the most influence on policy where they know the least and disagree most vehemently† (1987, p.1). This maxim is certainly true when the subject in question is free trade. 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It is an international body whose purpose is to promote free trade by persuading countries to abolish import tariffsRead MoreThe North American Free Trade Agreement2468 Words   |  10 PagesIntroduction The North American Free Trade Agreement (NAFTA) was is the biggest free trade region in the globe, creating economic development and helping to raise the living standard for the citizens of all three member states. By strengthening the policies and procedures governing trade and investment, the NAFTA has indicated to be a solid foundation for developing Canada’s prosperity and has set an important example of the advantages of trade liberalization for the rest of the globe. Two decadesRead MoreMexico : A Unique Country1750 Words   |  7 Pagesinto account what brought Mexico in the state that it is in now. 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