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The Cotton And Sugar Subsidies Decisions: Wto’S Dispute Settlement System Rebalances The Agreement On Agriculture, Stephen J. Powell, Andrew Schmitz

Stephen Joseph Powell

Acting on a complaint by Brazil, a WTO dispute settlement panel ruled September 8, 2004, that a variety of support programs for upland cotton exceeded reduction commitments made by the United States when it signed the 1995 WTO Agriculture Agreement and were thus not immune from challenge under the WTO Subsidies Agreement, with which the Panel then found these programs inconsistent.

The Panel's conclusions, if upheld by the WTO's Appellate Body, will have significant impact on agricultural policies for specialty and program crops of the United States, Europe, and Japan. This paper analyzes the decision, notable as the first to …

The Cotton And Sugar Subsidies Decisions: Wto's Dispute Settlement System Rebalances The Agreement On Agriculture, Stephen J. Powell, Andrew Schmitz

UF Law Faculty Publications

As far back as David Ricardo's shattering insight as to comparative advantage in 1817, agriculture has enjoyed special favor in trade. The unique place of farming was so well established by the time the 1947 General Agreement on Tariffs and Trade ("GATT") was negotiated that GATT's tight disciplines on government interference with free trade not only exempted government protections to growers, but in fact were drafted to be fully consistent with the agricultural policies of the major signatories. While it would be an exaggeration to argue that GATT' s first half century was without impact on agricultural benefits, the sector …