FarmPolicy

February 21, 2019

Trade Issues; Crop Insurance; Policy Issues; and Climate Change

Brazil Cotton Case

Noel E. Oman reported earlier this week at the Arkansas Democrat Gazette Online that, “To some, the United States didn’t have much leeway when it reached an interim solution last month with Brazil in a long-running dispute over American government subsidies to U.S. cotton growers.

“‘We had a limited number of things we could do,’ said Rose Marie Watkins, director of the international policy team for the American Farm Bureau Federation. ‘There wasn’t a lot of choice.’ The World Trade Organization ruled last August that the subsidies violated global fair-trade rules and decided to allow Brazil to impose import tariffs valued at $820 million on American goods and intellectual properties. After that ruling, Brazil and the United States negotiated a $147.3 million temporary solution until Congress can address the larger issue of American farm subsidies in the 2012 farm bill.

“The solution, announced April 6, calls for the United States to provide Brazil with $147.3 million per year to provide ‘technical assistance and capacity building’ for Brazilian cotton farmers.”

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