America 's Trade Organization For Violating Free Trade Agreements

923 WordsApr 20, 20164 Pages
In 2002, the United States of America passed a policy that granted United States farmers access to subsidies, in order to protect the domestic market in agriculture. In retaliation to this policy being passed the Brazilian government sued the United States in the court under the World Trade Organization for violating free trade agreements. The Brazilian government claimed that the United States was liberalizing its trade, making it unfair in a free market. The World Trade Organization enacted punitive measures against the United States by imposing tariffs and lifting patent protection on various United States goods. The United States had to act in some way because these measures would hurt markets in other areas including agriculture. The U.S. then agreed to subsidize farmers in Brazil by giving them one hundred and fifty million dollars. Many people argue that the other countries do not face the same regulations as in America, and there for are more protected, but other countries say that subsidizing farmers takes away a free market. There are pros and cons to subsidizing farmers in any country. The good side is that it provides job security for farmers and helps them to work around regulations and still acquire profits. The bad side is that these subsidies result in inefficient farmers that just get their compensation at the end of the year without producing a standard amount of product. It is also argued that subsidizing farmers restricts economic growth. I believe that
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