More on the Brazil-U.S. Cotton Case

A couple months ago, I wrote up Brazil's complaint before the WTO about U.S. cotton subsidies. This week, the WTO decided in favor of Brazil, ruling that the U.S. subsidies indeed did have negative effects on cotton production in Brazil and West Africa, and that the subsidies violated trade agreements. While the U.S. hopes to appeal, I, like Randy, hope this is the end. The policy is stupid and damaging, and, as Randy points out, makes the U.S. an even greater hypocrite in the international community for insisting that "free trade" is the only viable economic path in the world while relying on subsidies that limit the long-term planning and investment, essential parts of free trade systems of economics. We simply can't push free trade on Latin America (and elsewhere) while trying to exempt our own farmers from such policies. Again, hopefully this will end now, but it's certainly good to see Brazil and Africa win on this one.