WTO Examines Brazil Complaint That It Lost US$ 4 Bi from US Cotton Subsidies

The World Trade Organization (WTO) is going to analyze whether the subsidies granted by the United States to cotton farmers have been cancelled.

A panel opened at the end of September answers to a request by Brazil, which states that the decision taken in 2005, when the Dispute Settlement Body judged that the financing was against many of the international organizations norms, has not been fully complied with. The organization stated that up to July last year the subsidy programs should have been suspended.

According to the Ministry of Foreign Relations of Brazil, the US government programs for guarantee of export credit and for the internal support has suffered few modifications.

On August 1st this year, the United States government eliminated the Step 2 program, which paid exporters higher prices than those charged on the foreign market, increasing the competitiveness of the North American product.

However, Brazil considered the elimination insufficient, as it is just one program amidst another six. In the period between 1999 and 2003, the United States paid US$ 12.5 billion in subsidies to farmers and managed to remain in the second place in global production of cotton, losing only to China.

On September 1st, in a Dispute Settlement Body meeting, Brazil made a complaint asking for a panel to evaluate Brazilian losses. In case the panel’s conclusion is favorable, the Organization will grant Brazil the right to elevate the set of import tariffs on North American products to the same value of Brazilian losses – estimated at US$ 4 billion.

The Ministry of Foreign Relations recalls that the North American subsidies affected not only Brazil, but also the African countries, as the mechanism causes price losses on the international markets.

Tags:

You May Also Like

Alternative Medicine Endorsed and Adopted by Brazilian Government

The correct use of alternative medicines for health treatments is the main objective of ...

Brazil’s Embraer Files Suit Charging Gulfstream with Stealing Its Employees

Brazil’s aircraft maker Embraer has filed a lawsuit against American-based Gulfstream, a manufacturer of ...

Ilhí©us, Brazil, Immortalized by Jorge Amado, Gets Gol’s Daily Flight

Gol, the Brazilian airline, had 297% growth in the number of passengers transported on ...

UN Hints Brazil May Grow a Mere 0.5% in 2009

São Paulo, Brazil's stock exchange, the Bovespa,  suffered a heavy fall this Monday, December ...

Brazil: Lula Wins Round One

Unfortunately for Lula, the pension vote alone is not a magic wand, and much ...

Brazil Calls Doha Round Talks Collapse a Major Setback

Negotiations for a new global free trade agreement fell through Monday, July 24, after ...

Brazil Wants to Punish China, But Still Does Not Know How or When

The Brazilian government hasn’t yet decided a date for applying protection measures against Chinese ...

Giovanna Maira, blind Brazilian singer

Blind Brazilian Singer Wins Young Soloist Award in the US

VSA arts (formerly Very Special Arts) announced Thursday, February 16, the recipients of the ...

In Brazil, Abduche Is Synonym with Fine Decoration Fabric

The Syrian Abduche family arrived in Brazil at the beginning of the last century ...

This Brazilian’s Promise: To Become the Richest Man on the Planet

Brazil’s billionaire Eike Batista said that he expects to become the world’s richest person, ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`