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This article analyzed the rulings of the WTO American Cotton Case which was filed by Brazil regarding the American subsidies for the cotton producers. This case was very important in many aspects. First, most of American payments to the cotton producers proved to be a violation of Agreement on Agriculture(AoA) and Agreement on Subsidies and Countervailing Measures(ASCM). This conclusion might give a chance for the developing countries to complain about American subsidies for other crops. Second, this decision made it clear that the subsidies which were paid by the commitment schedule under the AoA could violate ASCM.
Specifically, direct payments and production flexibility contract payments were not classified as green box. And counter-cyclical payments, marketing loan program payments and market loss assistance payments were recognized as amber box payments which caused price suppression in the same market and gave the serious prejudice to the Brazilian interests. User marketing payments(Step-2) were controversial about whether their character was of domestic support or export subsidies. The panel decided they were export subsidies and import substitution subsidies. The export credit guarantee was declared to be red subsidies even if the negotiation process might show that it was non-red subsidy.
Many commentators have criticized this decision, saying it was too loyal to the text and ignored the intents of the negotiators. This could be explained by the fact that WTO agreements are more increasingly being treated as legal texts rather than political agreements.
Specifically, direct payments and production flexibility contract payments were not classified as green box. And counter-cyclical payments, marketing loan program payments and market loss assistance payments were recognized as amber box payments which caused price suppression in the same market and gave the serious prejudice to the Brazilian interests. User marketing payments(Step-2) were controversial about whether their character was of domestic support or export subsidies. The panel decided they were export subsidies and import substitution subsidies. The export credit guarantee was declared to be red subsidies even if the negotiation process might show that it was non-red subsidy.
Many commentators have criticized this decision, saying it was too loyal to the text and ignored the intents of the negotiators. This could be explained by the fact that WTO agreements are more increasingly being treated as legal texts rather than political agreements.
목차
Ⅰ. 서
Ⅱ. 평결의 분석
Ⅲ. 평결에 대한 평가
Ⅳ. 평결의 한국에 대한 시사점
Ⅴ. 결론
참고문헌
〈Abstract〉
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