Case Analysis: Brazil’s Wto Cotton Case: Negotiation Through Litigation

Unfortunately, there has been poor progress in reducing agricultural protection in recent years. In fact, if global trade liberalisation was achieved by the WTO 's Doha Round, it could have boosted Australia 's agricultural exports by US$9 billion by 2020; thus displaying how highly protectionist economies and trade blocs adversely affect the Australian economy.

The economy of Brazil is in the top ten largest economies along with the United States. It is the biggest in Latin America. Actually it is the seventh largest in the world. Brazil has used its newly found economic mechanism to syndicate its outcome in South America and show more of a role in the Global Businesses. The Obama Administration’s National Security Strategy recognizes Brazil as a developing center of effect, and greets the management of the country’s joint and global issues. The United States and Brazil associations mostly have been good in the recent years. But Brazil has other strengthening relations with neighboring countries and expanding ties with nontraditional partners in the South that’s developing.

However, some believe, that a shift in the way we produce food may have some unintended consequences. They contend that poverty in nations such as Africa and Asia, is caused by the low productivity of the unindustrialized farm labor. The U.S. Agriculture Department projects, without reform, there will be over a thirty percent increase in the numbers of the ‘food insecure’ people in those nations over the next decade (Paarlberg 179).

to sell products in Cuba, and that it would no longer penalize other nations for

Raghavan, Chakravarthi (2000). The World Trade Organization and its Dispute Settlement System. Retrieved from: http://www.twnside.org.sg/title/tilting.htm

“American farmers can sell to Cuba, but with one hand tied behind their backs. This commonsense legislation simply lets them compete. Removing arbitrary financing restrictions on selling to Cuba could significantly increase U.S. agricultural exports, create jobs across the country and provide the Cuban people with high-quality American food”. (Engage Cuba Coalition).

Globalization is a predominant term in global politics today, but it is a more complex issue than some may perceive it to be. While it has enabled a remarkably integrated global political landscape and fast-tracked the international economy, these new global networks also exposed the full extent of economic and power imbalances between states. Powerful western states and corporations have used global integration to exploit states that are rich in highly sought-after resources, but not strong or secure enough to protect these resources from external actors. The worldwide cocoa industry has expanded profoundly since its emergence in Mesoamerican culture in the 15th century, and this industry has become a microcosm of western dominance in the global economy. The exploitation of Latin American and African countries at the hands of western corporate enterprises is an ongoing trend in cocoa production; however, hope rests in corporate social responsibility and the fair trade movement to dramatically alter the global production network of cocoa going forward.

From the 1500’s to the 1930’s the Brazilian economy relied on the production of primary products for exports. For three centuries Brazil’s economy was heavily curbed because since Portugal discovered Brazil, they subjected it’s economy to an imperial mercantile policy or a strictly enforced colonial pact. Even though Brazil received its independence in 1822, Portugal’s phase of decisions left a lasting, powerful imprint on Brazil’s economy and society. In the late eighteenth century, when wage labor was adopted and slavery was eliminated considerable changes finally began to occur. Only starting in the 1930’s were the first steps taken to convert key structural changes by changing Brazil into a

Throughout the early to mid start of the twenty-first century Latin America had experienced what was believed to be its largest boom in terms of economic growth. Forecasters were mainly looking at the nation of Brasil to demonstrate this boom through the leadership of then president Luiz Inácio "Lula" da Silva. Brasil was predicted to be one of the global leaders in terms of developing nations in the modern era. In fact it was the only Latin American country inducted into the BRICS ( Brasil, Russia, India, China, South Africa) movement. However one issue arose to the nation of Brasil and other Latin American countries that would haunt them in the future. The artificial rise in the prices of commodities minerals, oil and grains brought about

The North American Free Trade Agreement (NAFTA) became effective on January 1, 1994. It involves free trade of goods, services and investment between United States, Canada, and Mexico. In this agreement the United States holds largest trading with Canada and Mexico. (Daniels, 2015, p.275). The recent biggest challenge to NAFTA is the illegal immigrants from Mexico. As stated in the text book, trade in agriculture increased with executing of NAFTA and more than a million farms jobs disappeared in Mexico due to competition with U.S. Many of these farmers moved to U.S. In 2013 out of the estimate of 11 million illegal immigrants most of them are from Mexico. The money sends by these farmers in wire transfers to Mexico is higher than what Mexico receives in the form of foreign direct investment (FDI). Therefore, illegal immigrants have become a political issue between U.S. and Mexico. (Daniels, 2015, p.277). In order to control the illegal immigrants, the U.S. government wants to place a wall on the border of U.S. and Mexico. To cover the cost for the wall U.S. government is considering imposing 20% tax on Mexican imports. (Loss Angeles Times).

Why though does America need to bend for the favor of Brazil? The answer is found is a story of an almost decade old trade dispute started by one Brazilian man. Chana Joffe-Wait of NPR’s Planet Money Blog reports on her encounters of the Cotton Industry while working on a project to produce a t-shirt for their show, from raw material to final product. During her research she meets that single Brazilian man, Dr. Pedro de Carmago Neto, a Brazilian cattle farmer, who started the campaign against US Cotton that culminated in the very controversial $147.3 million pay-off. Mr. Carmago felt “they were being cheated in the process”, cheated by American subsidies. In 1994 America, Brazil, and 150 others countries signed the world trade organization agreements otherwise known as the Global Trade Rule Book, which spelled out which subsidies, were legal

Chile has had a few difficulties in recent times. Like Chile, many countries offered startup companies money and incentives to move to Chile to start their business and now are hurting because of this. While Chile has had success with this venture and it has helped economic development of the country. Many countries in South America have concentrated their exports more on natural resources with few linkages to the rest of the economy. Central American and Caribbean countries are struggling to increase the competitive of their firms and retain more value added within value chains. South America should aim for more robust productivity rates, with the aim of making economic growth more inclusive. Many countries need to upgrade their infrastructure and logistics in order to boost competitiveness across more international markets and global value chains. Modifying rules and regulations to enable more effective use of current infrastructure is also needed. These countries need to invest more in research and development, look into start-ups and certain skills to tap into global opportunities. Government also must cater to an emerging middle class with more and better public goods and

On September 2002, Brazil, major cotton export competitor, reached out to the World Trade Organization to complain about the United States cotton subsidies. Brazil requested action against the US by filing a WTO dispute settlement case. On 2009, the WTO authorized Brazil to increase import duties on certain products imported from the US and to suspend sections of the TRIPS Agreement. To avoid these sanctions, the US accepted to pay Brazil $147.3 million annually. Starting with a brief introduction about agricultural subsidies and the cotton industry, in this paper I will discuss the issue regarding Brazil’s cotton industry, how the US and Brazil agreed to settle the dispute, who is impacted by the cotton subsidies, and what the latest arrangement means to all countries affected.

Textual analysis has revealed that Brazil’s South–South project is packaged in a language of success that evokes storylines about Brazil's domestic achievements (regarding its agricultural trajectories specifically) (FGV Projetos 2013), about landscape-based, historical ties and cultural affinities with African countries (MRE 2003a, MRE 2011), about the emergence of the global South (Brazilian Presidency 2014) and the rise of Brazil as a friend/brother who helps those in need (MRE 2003b), and about the suitability of Brazilian

In 1994, the leaders of the thirty-four democratic countries of the Western Hemisphere launched the process of creating a Free Trade Area of the Americas (FTAA). The FTAA will be established by 2010 with the aim of gradually eradicating barriers to trade and investment in the region. The final characteristics of the FTAA will be determined through negotiations by government officials from the thirty-four participating countries. The trade issues that are presently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Guiding principles for these negotiations