Preview

Case Analysis: Brazil’s Wto Cotton Case: Negotiation Through Litigation

Powerful Essays
Open Document
Open Document
2263 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Analysis: Brazil’s Wto Cotton Case: Negotiation Through Litigation
BACKGROUND

In the history of the WTO, it has been unusual for any developing country to win substantial concessions from the dominating EU-US block for increased market access and reduced tariffs. It is much more unusual when these concessions are granted in agricultural products, the most highly subsidized industry in the West. Starting in 2003 however and starting with the efforts of Brazil’s Pedro de Caramago, developing countries began to take a more aggressive and mobilized stance against EU and American subsidization of agricultural products.

As a result, the 2nd Doha Rounds in 2006 will be convened to deal specifically with the issue of the overall liberalization of global agricultural markets. However, the degree to which the final outcome of these talks will be favorable to the least developed countries and the poorest farmers in the world is complicated by regional and global power dynamics, conflicting national agendas, coordination failures amongst WTO members and the dependence of key developing country players on the EU and US. Having set the wheels in motion, Pedro de Caramago is now faced with the challenge of mitigating these tensions and reconciling these potential conflicts in order to establish a common agenda for the Doha Round that could lead to a mutually beneficial resolution that will benefit the least developed countries and significantly impact the poorest farmers in the world.

Several key events led up to the final pressure against the EU and the US with regards to liberalization of their much protected agricultural sectors.

Brazil Sets the Wheels in Motion: The wheels were first set in motion by Pedro de Camargo, when he filed 2 cases on behalf of Brazil against the US cotton and EU sugar subsidies claiming the violation of the Agreement on Agriculture (AoA) signed during the Uruguay Round.

West Africans Mobilize: Riding on this momentum and with the technical help of international organizations the West

You May Also Find These Documents Helpful

  • Better Essays

    Nontariff barries

    • 1168 Words
    • 5 Pages

    Busch, Marc L. Eric Reinhardt (2003), “Developing Countries and GATT/WTO Dispute Settlement”, Journal of World Trade 37(4)…

    • 1168 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Jansen, M. (2010). The Journal of International Trade & Economic Development. Developing countries, standards, and the wto. Retrieved from http://rx9vh3hy4r.search.serialssolutions.com/?ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info:sid/summon.serialssolutions.com&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Developing+countries%2C+standards+and+the+WTO&rft.jtitle=Journal+of+International+Trade+%26+Economic+Development&rft.au=Jansen%2C+Marion&rft.series=Journal+of+International+Trade+%26+Economic+Development&rft.date=2010&rft.pub=Taylor+and+Francis+Journals&rft.issn=0963-8199&rft.eissn=1469-9559&rft.volume=19&rft.issue=1&rft.spage=163&rft.epage=185&rft.externalDocID=tafjitecd_v_3a19_3ay_3a2010_3ai_3a1_3ap_3a163_185_htm¶mdict=en-US…

    • 1353 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    6. The major economic powers have a major influence in the institutions of globalisation, like the WTO, and this can work against the interests of the developing world. The level of agricultural protection by rich countries has also been estimated to be around five times what they provide in aid to poor countries…

    • 483 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The world today is continually becoming more and more advanced through the development of new technology and scientific data. This incremental process has sped up dramatically in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally. Thus, Europe has been a leader in this advancement and has contributed greatly to the process the world calls globalization. “Globalization is an objective, empirical process of increasing economic and political connectivity, a subjective process unfolding in consciousness as the collective awareness of growing global interconnectedness, and a shot of specific globalizing project that seek to shape global conditions.” Europe has followed all the examples in this definition and has been a key contributor, along with the United States, to connecting many countries economically. An important aspect in globalization and world economies is trade relations. Through the implementation of trade organizations, such as the World Trade Organization (WTO), the Single Market Act and North American Free Trade Act (NAFTA), countries are able to trade freely in order to boost their economies. However, as seen in the Caribbean, Europe and other world powers have abused the world trade systems, leaving these small nation-states vulnerable and dependent. One case in particular that abuses world trade relations is the banana import establishment. The dispute between the European Union (EU), the United States and the Caribbean over the banana import regime shows that an agreement prescribed to help the small banana growers of the Caribbean nations were overridden by corporate and supranational interests supported by international trade rules. Therefore, the bananas coming out of the Caribbean have both helped and hurt the economy, but more importantly helps explain Europe’s globalization motives and the effect it has in the Caribbean.…

    • 2208 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The role of the World Trade Organisation is to promote free trade and economic cooperation between countries. As WTO offer Freer trade this cuts the cost of living, food and clothes are now cheaper than they have ever been before, this is because with the lowered trade barriers through negotiations and applies there becomes a principle of non-discrimination. The result is reduced costs of production (because imports used in production are cheaper) and reduced prices of finished goods and services, and ultimately a lower cost of living. 'According to one calculation, consumers and governments in rich countries pay $350 billion per year supporting agriculture' This can be seen as norrowing the gap, as developed and developing countries are able to create relationships which therefore encourages trade dependency and improves competitiveness globally. The WTO is a 'Top Down' approach, which means it's government led, local needs are rarely considered. The WTO has been successful in narrowing the development gap in Uganda, as they are now able to earn money through exporting commodities, there economic growth grew by 5.6% and with this free trade it's coffee export in 2007 was worth $350 million, However it has also been successful in widening the gap as the WTO has been accused for just helping the developed countries, made by MEDCs for MEDCs. For Uganda and other developing countries they have became a lot more dependent on…

    • 988 Words
    • 3 Pages
    Good Essays
  • Best Essays

    The WTO’s Uruguay Round proved to be an historical landmark in the expansion of the international trading structure, as it included development of both textiles and agriculture previously overlooked and left isolated by the GATT ( Hoekman and Mavroidis, 2007), as well as the addition of several new disciplines including, but not limited to intellectual property protection and trade in services. Towards the end of the 1990s global trading institutions remained optimistic that the WTO would broaden its policies to include both trade and investment. Unfortunately these initial efforts were thwarted in Seattle in 1999.…

    • 3045 Words
    • 13 Pages
    Best Essays
  • Best Essays

    In recent decades International trade rules and practices have worked in favour of developed countries but against less developed countries, in recent years however this trend has declined and the future of trade rules and practice appears to be less discriminatory. Less developed countries (LDCs) have consistently been faced with challenging trade rules and practices. Historically LDCs had minimal influence on rules and practices that impacted upon them however LDCs have recently asserted themselves and formed strategic alliances with one-another. The main international institutions impacting upon LDCs are the World Trade Organisation (WTO), the International Monetary Fund (IMF) and the World Bank (WB), all 3 of whom have been accused of preferential treatment in favour of developed countries (DCs). DCs have also impacted upon LDCs, mainly in the areas of imposed barriers to trade such as tariffs and subsidies. The supply of aid to LDCs is discussed as are the barriers to implementation of policies and reform that LDCs face on a regular basis. Finally the trend towards bi-lateral agreements and movement towards a free market are discussed and advantages outlined.…

    • 3535 Words
    • 15 Pages
    Best Essays
  • Satisfactory Essays

    Brazil: Leading the Brics?

    • 13807 Words
    • 56 Pages

    On January 1, 2011, in fron of a crowd of thousand gathered o Brasília’s central espla n nt d ds on anade, Brazil newly elec l’s cted presiden Dilma Rou nt, usseff, shouted energetically, “We are living in one of the d , best periods of our national life!” She then added, “I have c o l come here to consolidat the o te formation we experienced under Presid e d dent Luis Iná ácio Lula da S Silva.”1 Know to Brazilia as wn ans transf Dilma her enthusi a, iasm appeare justified sin Brazil ha sustained a average an ed nce ad an nnual GDP gr rowth of 4% since 2000. Between 2002 and 2009, ine B equality and p poverty had d declined sign nificantly and more than 30 million Br razilians had advanced fr d rom lower in ncome strata to the midd class. Alth dle hough Brazil was not gro l owing as fast as its fellow BRIC (Brazi Russia, Ind and Chin countries India t w il, dia, na) and China, it held important le C eadership pos sitions in the Group of Tw wenty (G-20) and had beco ome a major player in multilateral trade negotiati r m ions. Yet, Bra azil’s success in World T s Trade Organiz zation (WTO disputes concerning developed country agricu O) c d ultural subsid dies, use of WTO compu ulsory licens sing provision to break patents, and diplomatic ne ns d egotiations wi Iran had g ith generated ten nsions with the United Sta and the European Uni t ates E ion. Di ilma had to decide wheth to follow the internati d her ional policies associated w s with her two o-term prede ecessor, Lula, or to advance a new agenda. During he inaugural s e er speech, Dilma started to outline n her am mbitions: “We will not make the slighte concession to protection policies in rich countri as e est n nist ies, they repress the op r pportunity for developing countries to o r overcome poverty.” To pu ursue this plan, she had to either push for develop h ped countries to reduce a s agricultural s…

    • 13807 Words
    • 56 Pages
    Satisfactory Essays
  • Best Essays

    While globalization is a relatively new phenomenon in theory, but not necessarily in history, as of 2009 it has created transnational corporations linked to government, international economic institutions, and non-government organizations. (Steger 67). With this definition bananas are a textbook example of the globalization of tropical fruit commodities. The transnational corporations of the United States, most notably Chiquita, Dole and Del Monte, have been linked to the governments of Latin and South America, the World Trade Organization, and the “organic” fruit movement. By tracing the path from banana plantations to supermarket it becomes clear how the “morals” of capitalism have permeated into the global banana market by emphasizing cheap labor, indifference towards the environment, and trade liberalization. This commodity chain of corporatized “dollar” bananas demonstrates how globalization benefits the powerfully rich fruit companies and not the countries and laborers where bananas are grown; and further, “dollar” bananas highlight consumers’ ignorance of the food they eat.…

    • 1620 Words
    • 7 Pages
    Best Essays
  • Better Essays

    Barker, D. 2007. The Rise and Predictable Fall of Globalized Industrialized Agriculture. The International Forum on Globalization: San Francisco.…

    • 6408 Words
    • 26 Pages
    Better Essays
  • Better Essays

    Panagariya, A. (2005), Agricultural liberalisation and the least developed countries: Six fallacies. World Economy, 28: 1277–1299. doi: 10.1111/j.1467-9701.2005.00734.x…

    • 1792 Words
    • 6 Pages
    Better Essays
  • Good Essays

    channiboo

    • 1191 Words
    • 5 Pages

    The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. Where countries have faced trade barriers and wanted them lowered, the negotiations have helped to open markets for trade. But the WTO is not just about opening markets, and in some circumstances its rules support maintaining trade barriers for example, to protect consumers or prevent the spread of disease.…

    • 1191 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Food insecurity is linked to various issues such as poverty, low income, poor infrastructure, inequitable access to land, water, credit and markets. Food security is also threatened due to natural disasters such as floods, droughts and further exacerbated by internal conflicts which can dislocate rural and farming communities. These issues and challenges are the normal and repetitive debates among the global community of practice regarding food security while the needs and necessities of the peasant farmers, who are responsible for the majority of food production around the globe, are not addressed. In The Food Wars, Walden Bello presents the important and burning issues of the North-South power gap and hierarchy regarding food security. Bello depicts and argues the role of the Bretton Woods institutions influencing agricultural policies in developing countries, organizations such as the WTO designing rules and regulations that exclude developing nations and their smallholder farmers, while donor organizations such as USAID heavily persuade developing nations to adopt unfriendly domestic policies. Most importantly, Bello closes the gap between the policies made by multilateral institutions, developing government ministries and their implication on the peasant farmer.…

    • 1238 Words
    • 5 Pages
    Better Essays
  • Better Essays

    In an advanced society such as ours, it is unfortunate we are not able to provide what should be a basic human right to all American citizens, quality healthcare. The quality or level of healthcare should be a right for all and not a privilege for some. Once a single definition is established, health care professionals can begin to measure quality and improve the process of healthcare in this country. The U.S. Agency for Healthcare Research and Quality defines quality healthcare as "doing the right thing, at the right time, in the right way, for the right person, and having the best possible results." www.ahrq.gov/consumer/qnt/qntlook.htm. Once the industry establishes what is wrong, it can begin to devise some solutions to improve the quality of healthcare. With that said, how can an acceptable level of quality of health care be assured for all American citizens?…

    • 1654 Words
    • 7 Pages
    Better Essays
  • Best Essays

    Membership of the World Trade Organisation has often been a key tool for governments seeking to enhance the credibility of trade reform and to provide firms with a more predictable external trading environment. At the same time, successive rounds of multilateral trade liberalisations have highlighted the difficulties that many low-income countries are facing in capturing the benefits of more open markets. In these countries, governments, institutions and enterprises often lack capacities, e.g. information, policies, procedures and/or infrastructure, to compete effectively in global markets and take full advantage of the opportunities that are offered through international trade (OECD Journal on Development, 2007).…

    • 1371 Words
    • 6 Pages
    Best Essays

Related Topics