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

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.

Throughout history since the birth of Civilizations such as Egypt or the Roman empire, economics have played a vital role in assessing the strength and global dominance of a Nation over its adversaries. The components which make up a nation’s economy vary from one another as certain countries are geographically located to resources which make for a better economic source as well as the strength of a countries coastal structure. America a relatively new nation in the perspective of civilizations has the strongest economy ever in recorded history due in large part to the nation 's ability to produce products at a high level and export them to needy consumers. Found in the same hemisphere, Brazil the largest country found in South America is trying to distinguish itself as relatively dominate world power in a continually globalized world. One-way Brazil proposes to achieve this goal is by demonstrating the ability to construct a massive sustainable economy built upon exports, which could rival that of any major global power. The Brazilian economy asserted itself with a particularly high level of dominance in the late 1600 through 1700’s as an area of substantial agricultural production and exports with the most financial successful product being sugar cane. Despite great success early on in the country 's globalized economy the nation’s economic stability faced a major pitfall in the fact that the economy was highly dependent on one crop or product which made Brazil a boom or

Many support agricultural modernization, as a solution Africa’s, and many other impoverished nations hunger problems. This would include the industrialization of their agricultural industry, using modern, genetically enhanced seeds, and fertilizer. Yet, some of the same groups that are promoting the organic movement in the United States are advocating against the globalization of modern industrial agricultural practices (Paarlberg 179). Those who support modernization of such nations argue that the current process in inefficient, and inadequate. They believe that globalization of the highly capitalized, science-intensive, agricultural system that has been developed in the West, is the answer to the worlds hunger problems. They also warn that if the West abandons its current practices, it may fall victim to famine due to inadequate production (Paarlberg 179). However, supporters of organic production point to the fact that each year, approximately ten million tons of chemical fertilizer are poured onto our corn

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

In the Xia case, if the WTO were to rule in favor of Brazil, which of the WTO trade agreements would contain the justification and why?

Over the years, the World Trade Organization (WTO) has prided itself as the central element in the international economic management system across the world. This system incorporates other international bodies such as the World Bank, the International Monetary Fund as well as a series of other regional trade regimes that are growing. Collectively, these structures provide a mechanism that addresses international economic interdependence as well enhancing economic interactions that offer the promise of maximizing social welfare across the globe. These aspects have been brought about due to the focus given in the post-Cold War era where international relations have evolved beyond a narrow emphasis on politico-military affairs.

“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.

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

In essence, the United States has taken the WTO’s guidelines for non-distortionary (a.k.a “green box”) measures and enacted, or is signalling it will enact, the exact opposite measures. Namely, production-tied revenue or price protection, mostly through expanded crop insurance programs. First though, it’s important to understand why production-tied revenue protections are perhaps the most

Brazil filed a dispute against USA in the World Trade Organization in 2002, due to unfair subsidies given the US government to its cotton farmers. The subsidies given to the US cotton farmers made it increasingly hard for the Brazilian cotton farmers to compete in the world market. “In 2005 and again in 2008, the WTO found that certain U.S. agriculture programs were inconsistent with the United States WTO commitments” (US Trade Representative). Brazil eventually ended up suing the US because they thought parts of the cotton market was shown to be inconsistent with what the WTO promised. The United States and Brazil have had a discussion for quite some time to try and resolve the initial conflict. The United States pays Brazil $300 million

Why have Brazil’s governments in both the 20th and 21st century been eager to develop world-class manufacturing?

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

The Doha round of talks held in 2001 wanted to involve developing countries due to their growing importance, and hence this round was nicknamed the “Development Round.” Critics of this round suggested that nations should pursue more bilateral and regional trade agreements. This meant more Regional Trade

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