Brazil, with Rare WTO Approval, Threatens U.S. with Trade Sanctions

[The Straight Story]

Brazil, with Rare WTO Approval, Threatens U.S. with Trade Sanctions


After eight years of complaints, Brazil is now threatening to impose stiff trade sanctions against the United States over U.S. subsidizing of cotton production. Brazil has appealed to the World Trade Organization (WTO), which first ruled that the American subsidies were a violation of international law and then approved Brazil’s list of pending tariffs on U.S. exports.

A total of more than 100 goods, valued at $591 million, could be subject to import tariffs within 30 days, unless the U.S. comes up with a satisfactory compromise. Cotton products would be charged with a 100% tariff, while other goods like cars would increase from 35% to 50% and milk powder would jump 20%. Brazil is also considering $238 million worth of limits on royalties and intellectual property rights.

The Office of the US Trade Representative expressed disappointment over Brazil’s decision and called for new negotiations to settle the matter before the sanctions kick in.

http://www.allgov.com/US_and_the_World/ViewNews/Brazil_with_Rare_WTO_Approval_Threatens_US_with_Trade_Sanctions_100310

[GodlessBiker]

1. Perhaps one way to settle it is for the US to stop subsidizing cotton production?

I am sure a huge percentage of the subsidies goes to a real minority of cotton producers.

"An Oxfam study found that with a complete removal of US cotton subsidies, the world price of cotton would increase by 6-14%, resulting in additional income that could feed an additional million children for a year or pay school fees for at least two million children living in extremely poor West African cotton growing households."

http://www.oxfam.org/en/pressroom/pressrelease/2009-08-31/oxfam-reaction-wto-judgement-us-cotton-subsidies

[malaise]

6. Anytime people get serious they will see

more than enough empirical evidence that capitalism is non-stop subsidies for the rich in every sphere while said people argue against any subsidies for the poor.

[denverbill]

2. We need to end that socialistic cotton subsidization.

Keep GOVERNMENT out of FARMING!

I'm tired of my hard-earned tax dollars subsidizing lazy conservative, southern plantation owners. If they can't compete on price with Chinese farmers, or Brazilian farmers, let them find other work. Stop sucking at the government teat.

END SOCIALISM! STOP COTTON SUBSIDIES!

[RDANGELO]

3. Our trade policies are all screwed up.

We subsidize the cotton and then send it to places like India where the workers are paid around a dollar a day. Now, it says cars entering Brazil could increase from 35 to 50%. What tariffs do we charge on foreign cars.

[Elwood P Dowd]

4. Our tariffs on cars are 2.5%.

Free trade is killing us!

[RDANGELO]

5. Yep

Everything benefits the people at the top at the expense of the average worker.