If the US soybean subsidy is found to be contrary to the WTO agreement, the global soybean price will go up

Introduction: according to the Brazilian Ministry of agriculture, if the WTO accepts Brazil's request for us soybean subsidies and makes a decision in Brazil's favor, then global soybean prices may rise Brazil, the world's second largest soybean producer after the United States, recently asked the WTO to set up an expert group to assess whether the U.S soybean subsidies violated the 1994 Uruguay free trade agreement Brazil believes that US subsidies to soybean farmers have led to a decline in global soybean prices, resulting in a loss of US $1 billion per year If the United States does not provide subsidies, American farmers will not grow so many soybeans, the supply of soybeans in the international market will be reduced, and the international soybean price will be 30% higher than the current price A spokesman for Brazil's agricultural policy said the WTO's decision would be very important for Brazilian farmers who have already suffered heavy losses If the WTO agreed to establish a panel of experts and finally made a decision in favor of Brazil, Brazil and Argentina could both claim damages from the United States He said the WTO is likely to respond to Brazil's request in the coming weeks Soybean is one of the main agricultural products exported by Brazil In 2000, the export volume exceeded 4 billion US dollars This year, Brazil's soybean production is expected to reach 38 million tons, of which 25 million tons will be exported to overseas markets Both Brazilian analysts and American analysts agree that American farmers will face increasingly strong competition from Brazil Vast land and cheap labor could make Brazil the world's largest soybean producer, ahead of the United States.