Task Force in Brazil to Look Into Trade Retaliation Against U.S.
Brazil's National Trade Council says the Brazilian government has created a special task force to study possible trade retaliation against the U.S. over the lingering cotton dispute. The Council said the government will also send a letter to the U.S. to express Brazil's indignation over suspension of cotton payments to it. In 2004 - the World Trade Organization ruled that U.S. subsidies to cotton growers were illegal under international trade agreements. The WTO awarded Brazil the right to more than 800-million dollars in retaliatory measures - which could include tariffs on U.S. exports to the country or Brazil's suspension of patent protection rights for certain U.S. products. But in 2010 - Brazil and the U.S. came to an agreement. Brazil suspended retaliation in exchange for annual U.S. payments of 147-million dollars to Brazilian cotton entities - among other concessions. Due to the budget crisis - the U.S. made only a partial payment in September and has suspended payments beginning this month. The Brazilian intergovernmental task force will present recommendations on possible retaliation to Brazil's President by November 30th.
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