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

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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
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West Africans and LDC’s: The West African nations are caught between the desire for better trade terms with regards to cotton on the one hand, and the need to safe guard other agricultural commodities in which they are guaranteed preferential access on the other. With the 2006 Doha round around the corner, The West Africans nations are stuck in a precarious balancing act with regards to agreements on overall agricultural liberalization that may have disastrous consequences for their trade stance.


Coordination Failures: It is very clear that the United States will not ‘disarm’ on its own without concessions from other countries. All nations had rules and regulations that distorted market signals; and the US held a firm position that it would not lift its own distortions unless countries simultaneously did the same in varying degrees. Coordinating simultaneous and mutual liberalization efforts will therefore be critical to securing a favorable deal for developing with regards to cotton.

West African Negotiating Constraints: Critically, the West African nations are the most affected by the US’ subsidization of cotton. Yet they are faced with both external and internal pressures that severely constrain their negotiating stance with regards to reaching a mutually agreeable resolution vis-à-vis the US cotton dispute.

External Power dynamics come into play largely