by Shawn Regan
From NPR's Planet Money comes this puzzling question: why are U.S. taxpayers subsidizing Brazilian cotton growers? The answer lies in a contentious trade war that pits the U.S. — which pays out between $1.5 and $4 billion a year to U.S. cotton farmers — against the World Trade Organization, who says U.S. cotton subsidies are against global trade rules.
What happened when Brazil recently retaliated with taxes on U.S. imports illuminates the extent to which agricultural subsidies are embedded in American politics.
The American negotiators sat down in Brazil and immediately declared it impossible to get rid of the cotton subsidies right away. But the two sides came to an agreement.For U.S. taxpayers, it's also a lot of money. In effect, they are now subsidizing cotton farmers in both America and Brazil. For more, listen to the full story here.The U.S. would pay Brazilian cotton farmers $147 million a year, and Brazil would drop the threat of retaliation.
To review: The United States was found to be illegally subsidizing U.S. cotton farmers. We are still subsidizing U.S. cotton farmers. Now we're paying Brazilian cotton farmers, too.
"Maybe it's a bribe," Camargo [former Brazilian trade secretary] says. "For Brazilian farmers, it's a lot of money."
Founded 30 years ago in Bozeman, Montana, PERC—the Property and Environment Research Center—is the nation’s oldest and largest institute dedicated to improving environmental quality through property rights and markets.
PERC’s publications, each designed to resonate with specific groups, move ideas generated at PERC to broader audiences.
Research is at the heart of PERC's work, with a focus on the question: What is the link between economic growth and environmental quality?
The goal of PERC’s programs is to fully realize the vision of establishing “PERC University,” where scholars, students, policy makers, and others convene to expand the applications of free market environmentalism.
PERC's fellowships share a common goal of exposing new scholars, students, journalists, and policy makers to free market environmentalism, as well as enable scholars already familiar with FME to explore new applications.
PERC continues to publish and present a broad range of research and discussion through podcasts, videos, and other multimedia channels.