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Can Brazil's protectionism get US to practice free trade?

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pampango Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-30-10 07:41 AM
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Can Brazil's protectionism get US to practice free trade?
http://www.csmonitor.com/Money/The-Adam-Smith-Institute-Blog/2010/0329/Can-Brazil-s-protectionism-get-US-to-practice-free-trade

"Following a WTO ruling in their favour, Brazil proposed tariffs on US goods if American cotton subsidies weren’t repealed. With the proposal provoking little response, Brazil has recently threatened to disregard American intellectual property rights on top of the tariffs. This would include pharmaceutical drugs, movies, food, and much else. American lawmakers aren’t budging on the cotton subsidies.

So the die is cast and a serious trade war looms. I can’t get upset at Brazil for this. The country is trying to trade freely; it has filed suits against America through the WTO and the provisional tariffs do not extend to other countries. Indeed, the very fact that the Brazilian government is able to propose tariffs without implementing them shows both admirable restraint and a degree of autonomy that American leadership seems to lack. Entrenched agricultural interests in the US have the votes to block any legislation repealing the abusive subsidies, and even without their influence, there are always plenty of legislators eager to appropriate money from whomever they can.

Brazil has taken the unusual step of threatening intellectual property rights because they want these sanctions to have real bite. Mere tariffs will hurt Brazilian consumers as much as American exporters, and thus this kind of retaliatory action is self-defeating. However, with the suspension of American intellectual property rights, Brazilian consumers will be gaining something beneficial (albeit at the expense of overseas intellectual property markets). It is a gift of generic medications, of counterfeit DVDs, and of imitated clothing. American copyright holders should be worried, and they should put their energies toward lobbying for the end of American cotton subsidies – and other agricultural subsidies while they’re at it.

The Brazilian government is making these threats on behalf of the private sector. It is trying to tear down, rather than erect, trade barriers. This dispute is a tale of legitimate Brazilian business interests standing up to DC beltway graft."
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Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-30-10 08:08 AM
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1. They propose but don't implement tarriffs but then decide to jump to stealing.
Edited on Tue Mar-30-10 08:11 AM by Statistical
Ignoring intellectual property rights is stealing.

So they get a win from WTO and rather than act up on that legal win (implementing tariffs) they propose doing something illegal instead? WTF

Here is a crazy idea..... why not implement the proposed tariffs?

The farm lobby in US is insanely strong. People think the gun lobby, or tobacco lobby or drug lobby or media lobby has the power. They are small players compared to farm lobby.

What is Obama going to do? React on Tariffs that Brazil "might" implement? How about they implement the tariff?
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Mudoria Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-30-10 08:55 AM
Response to Reply #1
2. I agree with you
looks like Brazil is more interested in using this an opportunity to steal than implement the WTO rulings tariffs. More of a case of rich Brazilian cotton farmers vs rich American cotton farmers butting heads over who gets to screw consumers.
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madrchsod Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-30-10 09:07 AM
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3. brazil is raising more than just cotton tariffs....
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