Why Are We Paying $300 Million to Help the Brazilian Cotton Industry?

Taxpayers are being forced to pay $300 million to help the cotton industry–theBrazilian cotton industry–in order to resolve a long-standing dispute between the U.S. and Brazil over cotton subsidies.

In 2002, Brazil brought an action against the United States arguing that American cotton subsidies violated World Trade Organization rules. The Congressional Research Service explains:

In September 2004, after nearly a year-long period of hearings and review, a WTO dispute settlement panel found that certain U.S. agricultural support payments and guarantees were inconsistent with WTO commitments and resulted in market distortions that depressed international cotton prices, as asserted by Brazil.

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