Thread: U.S. to face Sanactions

Originally Posted by Red_Lizard2

bit of interesting news, and curious how if it will effect anything;


http://news.bbc.co.uk/2/hi/business/8230603.stm

The US faces annual trade sanctions of about $295m (£181m) for failing to scrap illegal subsidies paid to its cotton growers.

However the punishment, imposed by the World Trade Organization (WTO), is far less than the $4bn that Brazil, which brought the case, had wanted.

A WTO panel upheld last year's ruling that subsidies helped US cotton growers undercut foreign competitors.

Brazil said that its farmers and those in West Africa had suffered the most.

It made reference to the $4bn figure in documents it filed with the WTO about three years ago.

Squeezed out

The US said it was "disappointed" with the overall outcome of the dispute, which saw the WTO rule that Brazil could take retaliatory sanctions against the US and "suspend concessions or other obligations".

But the US Trade Representative's office added that it was "pleased" that arbitrators had "awarded Brazil far below the amount of counter measures it asked for".

US cotton subsidies were one of the most contested issues in the Doha round of world trade talks.

Producers in developing countries, especially in Africa, say the US subsidies squeeze their own farmers out of the market.

About $12.5bn was paid to American farmers by the US government between August 1999 and July 2003, Brazil had claimed.

Can someone please explain to me what exactly went down. Seems like the US helped their own cotton growers, and somehow that is against "the rules"?

LOL we've been sanctioned by brasil and africa. Whatever will we do? How about we stop sending shit to other countries period then let's see who want to talk. Africa lol get the fuck outta here. We've been helping that damn continent for decades. How about we send them a bill for services rendered.

Originally Posted by rock_lobster

Can someone please explain to me what exactly went down. Seems like the US helped their own cotton growers, and somehow that is against "the rules"?

Yep. They are called "trade agreements". When we subsidize out crop, that deflates the market price, which effects farmers elsewhere. So, let's say cotton is trading at $1.00 a bushel, but for some reason or other, we begin to subsidize the farmer's crop, they can comfortably knock down their asking price in the market to let's say $.75 per bushel, and not lose any money. Whereas, other farmers that grow the same crop from other countries have to take the hit in price, in order to sell their product. We do the same with sugar, and China does the same with steel. It is also a practice known as "dumping".

Originally Posted by deathgodusmc

LOL we've been sanctioned by brasil and africa. Whatever will we do? How about we stop sending shit to other countries period then let's see who want to talk. Africa lol get the fuck outta here. We've been helping that damn continent for decades. How about we send them a bill for services rendered.

We will pay the sanctions, that is what we will do. How about those that espouse "the market" as the sole arbiter, actually allow the market to make the price, instead of supporting "Big Agribusiness". Yet another reason why Americans aren't well liked.

Will tough actin' Tinactin take care of sanactions ?

Originally Posted by hawgballs

Originally Posted by rock_lobster

Can someone please explain to me what exactly went down. Seems like the US helped their own cotton growers, and somehow that is against "the rules"?

Yep. They are called "trade agreements". When we subsidize out crop, that deflates the market price, which effects farmers elsewhere. So, let's say cotton is trading at $1.00 a bushel, but for some reason or other, we begin to subsidize the farmer's crop, they can comfortably knock down their asking price in the market to let's say $.75 per bushel, and not lose any money. Whereas, other farmers that grow the same crop from other countries have to take the hit in price, in order to sell their product. We do the same with sugar, and China does the same with steel. It is also a practice known as "dumping".

Originally Posted by deathgodusmc

LOL we've been sanctioned by brasil and africa. Whatever will we do? How about we stop sending shit to other countries period then let's see who want to talk. Africa lol get the fuck outta here. We've been helping that damn continent for decades. How about we send them a bill for services rendered.

We will pay the sanctions, that is what we will do. How about those that espouse "the market" as the sole arbiter, actually allow the market to make the price, instead of supporting "Big Agribusiness". Yet another reason why Americans aren't well liked.

QFT.