| Summary: | This research is intended to find out the strategies that implemented by Brazil to apply the regime of Agreement on Agriculture (AOA), which allow this country to develop their domestic agricultural sector and expand their agricultural export to global market, without breaking the rules determined by AOA. In the first part, the study will focus on Brazilian agricultural policy with respect to programs that could be considered supported by the government and distortive to trade. The analysis of current domestic support programs with trade-distorting effects, as understood within the WTO legal system and more specifically the Agreement on Agriculture (Agreement), will be explained in detail. Furthermore, the next part is focused on the description and analysis of competitive factors in Brazil affecting Brazilian agricultural export in global market. It provides an overview of Brazil�s agricultural imports, exports during 2006�11 and a description of Brazilian government programs and regulations relating to agricultural exports.
This research employed a qualitative approach and case study as the strategy of inquiry. It used liberal neo-developmentalism as theoretical guidance. The data can be classified as a secondary data, and were collected using literature study, document analysis, and interview techniques.
The results of this research show that, Brazil makes plentiful use of its developing status, and this is clear when one observes the use of Article 6.2 of the Agreement. The so-called development box is offered as a special and differential treatment to countries in need of such action. Brazil is presenting itself as being in a comfortable position with respect to domestic support in the Doha Round negotiations, and our analysis confirms this position. Doha Round outcomes in terms of creating or strengthening domestic support disciplines will not be a constraint for the execution of the Brazilian agricultural policy. Even in the most restrictive scenario, assuming Brazil as a developed country, Brazil would still have enough room for maneuver by using non-product-specific and product-specific de minimis to notify its programs.
In addition, our findings also suggest that low on-farm production costs have helped to make Brazil a competitive exporter of soybeans, grains, and meats in recent years, despite significant challenges, such as inadequate transportation infrastructure, high interest rates, currency appreciation, and burdensome labor laws and tax structures. Brazilian exports are likely to grow more slowly in the current environment, particularly if rising domestic demand siphons Brazilian agricultural supplies from foreign markets. Nonetheless, Brazilian agricultural production and exports have the potential to continue growing significantly
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