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

2248 Words Aug 5th, 2008 9 Pages
BACKGROUND

In the history of the WTO, it has been unusual for any developing country to win substantial concessions from the dominating EU-US block for increased market access and reduced tariffs. It is much more unusual when these concessions 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 degree to
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If the 2nd Doha round was to be a success for developing countries, Pedro’s main challenge was in addressing the key political and economic obstacles that would impede Northern and Southern countries from reaching a mutually agreeable resolution.

MAIN STAKEHOLDERS

Brazil: Having won two successful cases against the EU and the US, and mobilized the West African and developing countries behind the call for decreased domestic support to US cotton, Brazil now has a two fold objective: to ensure the move to a more favorable agreement in terms of the liberalization of EU and US agriculture especially with regards to cotton, while ensuring that West Africans and other LDC’s are not hurt by the overall liberalization process.

The EU: The EU is seen to have conceded to the pressure from developing countries announcing a conditional concession on its sugar subsidies. The move has been duly welcomed as a step forward in the trade negotiation process, severely weakening the US case with regards to cotton.

The US: In 2006, the controversial Farm Bill that guaranteed market loan and countercyclical payments to its farmers will be up for renewal and the US will have to figure out how to incorporate the new WTO regulations into the

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