Analysis of the Brazil‐USA cotton dispute

Abstract

PurposeThe purpose of this paper is to explain and conceptually analyse the origins and outcomes of the Brazil‐USA cotton dispute.Design/methodology/approachThe analysis is conducted using a conceptual framework to show the effects of US policies on Brazil and the world cotton market. The historical context of the conflict is presented, to explain the motivations of both countries and the background of the dispute.FindingsUS cotton subsidies and related policies have the effect of harming international producers, including Brazil. This analysis, along with an explanation of Brazil's role in world cotton production, explains why Brazil had cause to complain to the WTO and why the WTO ruled in its favor.Practical implicationsThe implications of these rulings are that the international dispute and its unique resolution could foreshadow similar conflicts in the future between different parties over different commodities, and the analysis presented in this paper will serve to explain them.Originality/valueThis is the only paper to present a complete history of the Brazil‐USA conflict, along with a conceptual analysis of the targeted US policies.