Farmers to Gain in Trade Blow to US

After losing $600 million to American farmers in cotton sales in 2001, Brazil filed a complaint with the World Trade Organization (WTO) that may result in substantial changes in US policy. Brazil recently announced that the WTO had ruled in favor of its complaint that American farm subsidies distorted world cotton prices and hurt farmers in the developing world. However, an order for the US to lift its farm subsidies will have immense implications for farmers in developed countries as well. Although 90% of Australia's cotton goes abroad, little penetrates the subsidy-protected US market. Moreover, a ruling against the US will set a precedent for other developed nations, such as Japan and EU countries, that also subsidize their agricultural products. – YaleGlobal