Brazil and the WTO: It Helps When You Run the Joint
Possible Country Cronyism?
The Heck You Say As we have written for nearly a decade, the global trade market is a patchwork quilt of ridiculous government impositions - warping what should be a flat and level playing field: “‘Trade Wars’ actually aren’t about trade - they are about government trade policy. “If peoples are trading freely, there isn’t a ‘War’ - there’s commerce. The ‘Wars’ only happen when governments get involved, placing tariffs, regulations and subsidies in the way of the flow.” The goal - is actually free trade. Which means - zero government. Zero tariffs, zero importation limits and zero subsidies. For which now-President Donald Trump has been calling - for decades. Ask Oprah Winfrey. The global entity that exists to allegedly adjudicate trade disputes - is the World Trade Organization (WTO). And just like with every government entity - global or otherwise - it has failed nigh utterly in its mission. (See also: The United Nations.) International businessman Donald Trump long rightly found the WTOs’ execution…lacking. And as now-President Trump - has very, very little use for it. Trump Suggests Ignoring World Trade Organization in Major Policy Shift: “The Trump administration on Wednesday announced a sharp break from U.S. trade policy, vowing it may ignore certain rulings by the World Trade Organization if those decisions infringe on U.S. sovereignty.” Trump Is Close To Shutting Down The WTO's Appeals Court: “Dennis Shea, the U.S. ambassador to the WTO, said in a speech in May that the Appellate Body had become a rogue organization that routinely breaks the rules under which it is supposed to operate.” Trump Just Pushed the World Trade Organization Toward Irrelevance Well, I’m not entirely sure President Trump can do - what the WTO has already done to itself. How irrelevant has the WTO rendered itself? Behold one of the silliest trade disputes - in the history of silly trade disputes. Brazil Launches Trade Dispute against China over Sugar - WTO In fact, Brazil LOVES filing silly trade disputes at the WTO over sugar. W.T.O. Rules for Brazil in Sugar Dispute EU Sugar Dispute: WTO Appellate Body Confirms Brazil's Win Brazil Files a WTO Dispute against Thailand’s Sugar Regime Brazil, Australia to Fight Any Indian Sugar Export Subsidy Why are they silly? Why are all of these nations at sugar trade war with Brazil? Because Brazil massively subsidizes its sugar - to the tune of more than $4 billion per year. Which has rendered the global trade market - utterly warped. There are more than 100 sugar trading nations - yet Brazil all by its onesies controls half the market. Brazil’s massive subsidies - have strip mined any hope of anyone else competing against them. How does subsidy-bloated Brazil file WTO case after WTO - while escaping a very obvious reciprocal fate? Because the WTO has long classified Brazil as a “developing” nation. Which means they can subsidize they daylight out of their sugar - and with it eviscerate the global market - with WTO impunity. Because the WTO says Brazil is “developing.” You would think controlling half of a major global market - with over 100 competitors - would deem Brazil…beyond developing. But no. Perhaps this helps Brazil keep the designation: Roberto Azevedo's WTO Appointment Gives Brazil a Seat at the Top Table: “(T)he World Trade Organisation (WTO) announced that it had chosen the Brazilian Roberto Azevedo, 55, as its next director general.” That was in May 2013. Azevedo is today STILL director general. I simply can not fathom how Brazil has maintained its “developing” designation - all the long while dominating the global sugar market with its massive, WTO-scrutiny-free subsidies. It’s a mystery. This first appeared in Red State.