US loses $3 billion cotton subsidy dispute with Brazil at WTO

CNN Money has a report that the US has lost a dispute at the WTO, initiated by Brazil, over cotton subsidies. Brazil now may impose retaliatory tariffs.

Of course, it might be better if the US just played by the rules of free trade it claims to uphold, and eliminate or curtail domestic cotton and other crop subsidies. In the long run, retaliation does no one any good.

Brazil has warned that it is likely to target US intellectual property in retaliation. One possible avenue for retaliation could be antiretrovirals used to treat HIV. I believe that the WTO includes mechanisms for compulsory licensing of critical medicines in emergency situations, which are designed to aid countries facing epidemics.