Category: London Business School

Brazils WTO Cotton Case Negotiation Through Litigation Ray A Goldberg Robert Lawrence Katie Milligan 2004

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The Uruguay Round of multilateral negotiations for a world free-trade area (GATT) was a remarkable success, but it also produced a significant defeat for Brazil. The outcome was a deal to establish a liberalized international quota system for Brazilian cotton, a quota set at 14 million bales (more than double its quota position), far exceeding the country’s projected output, and substantially exceeding the agreed-upon target. A second bilateral agreement with the United States provided for US cotton producers to

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Brazil’s Supreme Court has held that the US Department of Commerce’s conclusion in its WTO dispute settlement proceedings that there was “adequate evidence” for an anti-dumping duty in the Brazilian apparel market (see 2004 WTO Disptr Ct, 4th Gr 683, 442 DLD 444, para. 670) is incompatible with Article XXI of the GATT 1994 (see 1994 GATT,

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Brazil took a major defeat at the WTO’s Appellate Body in July, 2004, when it lost an arbitration case against the United States in the Dumping case on Cotton. The Court found that the U.S. Increased the Cotton quota from 10,000 MT to 20,000 MT and implemented quotas for other countries (Japan, Australia, Thailand) on their exports (Japan, Australia, Thailand) as “normal value.”

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Organizational Ethics Ricardo Calleja Teresa Garcia de Santos

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