Talk about craziness. According to an editorial in yesterday's Wall St Journal, the US is subsidizing US cotton growers. 70% of the subsidy money goes to just 10 big cotton operations. Corporate welfare basically.
The international trade laws prohibit farm subsidies because they are a disguised tariff. Brazil sued the US for unfair trade practices and won. Unless the US drops this costly bit of corporate welfare, Brazil is legally entitled to retaliate with tariffs against American exports. The Brazilians have drawn up such a tariff and it has teeth and will hurt.
In last ditch negotiations the US has offered to pay Brazilian cotton growers the same subsidy that US cotton growers get.
This is totally crazy. In this time of federal deficit we should not be paying US farmers to grow stuff. And we should NEVER pay foreign farmers to grow stuff.
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