The Study On The Trade Dispute Of Cotton Subsidies Between The Brazil-USA (2002-2014)

In the 1930s,the United States began to implement agriculture subsidies policy in the 'period of Roosevelt's New Deal.The United States is famous for its protection and support for agriculture.The United States is the main cotton producing country and the biggest cotton exporter in the world.It provides generous subsidies for its cotton industries.Brazil thinks that American cotton subsidies policy suppresses the cotton price and artificially increases the share of American cotton exports in the international cotton markets,which does the harm to the economic interests of the Brazilian cotton farmers,makes the government's financial burden more heavier and international cotton markets out of order.In 2002,Brazil appealed the United States to the World Trade Organization(WTO)for its cotton subsidies problem.The dispute between two countries ended until they signed a Memorandum of Understanding(MOU)in 2014.The paper explores the development process of the dispute of cotton subsidies trade between Brazil and the United States.At the same time,it analyzes the reasons for winning the by Brazil and final reconciliation between two countries.The cotton subsidies dispute between Brazil and the United States is the first trade dispute about agricultural commodities subsidies in WTO's history.It is also the first one that a developing country challenges a developed country for subsidy problems,which has important significance for China.The cotton subsidy disputes between Brazil and the United States not only reflects Brazil's demand to cancel the cotton subsidies,but also reflect the developing countries' demand to cancel the agricultural subsidies.