Pros And Cons Of Brazil

The dispute, filed by Brazil over cotton subsidies, accused the United States of lowering world agricultural prices and altering agricultural trade flows through various forms of agricultural support. Brazil claimed that the United States violated a World Trade Organization commitment by providing support through various trade, distorting programs in an amount that exceeded acceptable levels and sued the U.S. The United States certainly appealed this ruling and attempted to overturn the decision. However, if the decision stands, then policymakers will need to adjust the U.S. support programs to comply with the World Trade Organization or face penalties for not doing so. In June 2010, the United States and Brazil signed a Framework Agreement to prevent the imposition of countermeasures by Brazil. At the time that would have affected approximately $800 million of U.S. trade, including U.S. intellectual property rights. …show more content…
The United States also made monthly payments to the Brazil Cotton Institute for technical assistance and capacity building activities. Today, the United States and Brazil have reached an agreement to settle the long lasting cotton dispute in the World Trade Organization. Under the terms of the agreement, Brazil will dismiss the Cotton case, giving up its rights to counter measures against U.S. trade or any further proceedings in this dispute. Some pros for subsidizing U.S. farmers would be that it lessens the need to source food from outside borders and manages food supply. It also gives farmers a consistent income. A few cons would be that it damages the environment and causes government intervention. I do believe the U.S. should continue to subsidize farmers because it provides jobs for them and it is beneficial to the