Brazil yesterday appealed for WTO sanctions of up to US$4 billion on the
United States for the subsidies the US government has paid to its cotton
farmers.
Brazil recently won a six-year dispute with the US within the World Trade
Organization (WTO) over the subsidies, which it says have distorted the cotton
price in the international market.
Brazil claimed that the subsidies had unfairly boosted cotton production in
the United States while harming Brazilian farmers.
In June, the WTO made a final decision on the issue, declaring the US cotton
subsidies illegal and clearing the way for Brazil to seek trade sanctions.
Brazil appealed for sanctions as early as 2005. The request was later
suspended due to an agreement between the two countries which, in the end, was
never fulfilled.
The Brazilian government had hoped to solve the dispute in the latest Doha
Round negotiations in July in Geneva. As the talks collapsed and no agreement
was reached, Brazil decided to seek the trade sanctions.
Meanwhile, Brazilian Foreign Minister Celso Amorim said Friday that Brazil is
considering starting another case with the United States over the tariffs it
imposes on Brazilian ethanol.