This paper is devoted to better understanding of the Brazilian agricultural national policies towards domestic support and implications related to WTO rules. Domestic support has taken central stage in the last years and in light of a global economic crisis will play an even greater role in international trade politics. The paper focuses on Brazil and lays out the different domestic support policies used by the government. It is divided into five distinct parts for better comprehension. These parts are as follow: a synopsis of policies and recent studies; replication of official WTO support notifications; construction of consistent shadow notification; comparison and discussion of shadow notifications in relation to the WTO rules; and projected notifications through 2018. Also ethanol policies and the WTO rules were carefully analysed in order to better understand the Brazilian domestic support.
Through this paper the reader will be able to have a better understanding of Brazilian agricultural domestic support policies with respect to WTO rules—a topic not well evaluated in the academic arena up to this time. A lot of scientific work has been done in the field of domestic support, but little has been done to better understand domestic support policies of specific countries in light of the WTO legal system.