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The U.S. lost a cotton subsidy case in the WTO. Brazil and several West African countries brought the case.
Brazil and several West African cotton-producing countries have
long claimed that their farmers suffer because of Washington’s payments
to cotton growers, which amount to some $3 billion a year.
Any trade sanctions imposed by Brazil will likely target American.
trademarks, patents and commercial services, the South American country
has warned.
The WTO appeals panel was not elected by anybody. I don't know
who was on the panel. Somebody chose them, but not us. The
proceedings are secret.
Other countries focus upon enforcing
trade agreements. The U.S. generally loses. (Global Trade Watch has an excellent summary of U.S. performance in WTO cases). We are a "free
market country" but we lose cases all the time. Our U.S. Trade
Representative focuses upon getting new trade agreements as fast as we
can. Never mind enforcement. We don't enforce the
rules.
But it was an unlawful subsidy. Subsidies are bad. Bad things. $3 billion. How can you be pro-subsidy?
How did the OPEC countries develop their oil? Government
ownership. How did China develop its economy? Government
subsidies and direct ownership of a massive percentage of the
economy. How did the U.S. and every developed country in the
world develop? By making an economic plan and nursing key
industries deemed good for the people.
Currency manipulation is
the biggest subsidy there is. But our government does
nothing. You are a protectionist if you want to curtail currency
manipulation. Somebody might retaliate if we enforce the rules.
U.S.
trade policy is a farce. It means getting another trade
agreement, no matter what it says. It is a distraction from the
problems of the day. Sapping energy from worthy endeavors.
A full rethink is needed. Let's take a pause from new deals.
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