How the Brazil-U.S. Cotton Dispute Could Affect Iowa’s Agriculture

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2015-07-28
Authors
Hart, Chad
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Hart, Chad
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Center for Agricultural and Rural Development

The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.

CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.

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Center for Agricultural and Rural Development
Abstract

Recently, a World Trade Organization (WTO) panel ruled on a dispute between Brazil and the United States. The dispute, filed by Brazil over cotton subsidies, accused the United States of lowering world agricultural prices and distorting agricultural trade flows through various forms of agricultural support. Preliminary findings, as reported by major news sources such as CNN, the New York Times, and the Economist magazine, indicate that the WTO panel agreed with most of Brazil’s case. The results of these findings and the ongoing WTO agricultural trade negotiations could have a dramatic impact on the ways agriculture can be supported by the federal (and state) government. And these possible changes in support could affect production agriculture in Iowa.

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