The Us And Brazil 's Cotton Industry

1813 Words Oct 23rd, 2014 8 Pages
Daniela Palermo
Class: 2:00pm
Briefing Paper #1
Related Chapter: Ch 7
Outline: The US and Brazil’s Cotton Industry
1. Introduction
a. “In this paper I will discuss the issue regarding Brazil’s cotton industry.”
2. Body
a. Agricultural Subsidies
i. Brief background ii. The GATT and WTO
b. The Settlement
i. Situation underlying the dispute ii. Initial settlement proposition iii. Latest arrangement
1. Congress’s new farm bill (STAX Program)
c. Impact around the world
i. US and Brazilian producers ii. Taxpayers iii. African nations
3. Conclusion
a. My viewpoint
i. Advantages and disadvantages of subsidies ii. The initial problem
The US and Brazil’s Cotton Industry
Introduction
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.
US – Brazil Cotton Dispute…
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