Brazil vs the U.S at the WTO : The U.S -Brazil cotton subsidy dispute

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Student’s Name Instructor Course Date Case Study: Brazil vs. the U.S at the WTO: The U.S -Brazil cotton subsidy dispute Introduction The case study seeks to establish an understanding of the U.S – Brazil cotton subsidies dispute. In a heated economy, the USA fails to adhere to the WTO’s regulations about offering illegal subsidies that could compromise another nation’s, Brazil, economic performance. In all incidences, Brazil wins through appeal and with retaliation threats the USA abides by its demands. Findings Brazil raises a concern about the US’s illegal subsidies that they seek dropping of these subsidies by the US government. As a result of the growing reputation of Brazil to the global economy in previous two decades is assumed as its growing assertiveness on the world economy (Nelson 1-2). After the Second World War, the globe saw the need of establishing an international trade organization majorly for solving disputes. The attempts to create a strong International Trade Organization failed to result in the formation of GATS (Nelson 2-3). The GATS saw the birth of WTO the current trade organization. Global trade disputes escalate the necessity of a trade organization. The Brazil initiated a dispute with the US over cotton subsidies through WTO with claims that US subsidies were not compliant with the WTO compliant. Since the US failed to take immediate modifications in the subsidies after the 2004 ruling, Brazil was granted a go-ahead in retaliation (Nelson 4-5). Discussion The main issues are arising, in this case, is about the failure of the United States to adhere to the ruling. Even though Brazil is granted retaliation go ahead, this

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