Its power makes a lot of sense if you bear in mind that cotton subsidies, and most other trade distortions (in the US, at least) that the WTO rules against are generally acknowledged to harm the country, but are pushed through by powerful interest groups anyway. WTO prohibitions allow Congress and the executive branch to avoid pressure to cave to these interest groups. The sanctioning mechanism, which allows other countries to enact reciprocal restrictions, only makes explicit the costs to those who benefit from free trade more generally ie, consumers and producers in other industries.

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