BRAZIL TO RETALIATE IN US COTTON DISPUTE
News Date September 01, 2009
The World Trade Organization (WTO) ruled this week that Brazil can move forward with imposing nearly $300 million in retaliatory sanctions annually against American products following a ruling by the WTO in 2004 that American payments to cotton growers violate international trade agreements.
Following this week’s WTO ruling, Brazil will begin infringing on patents on American pharmaceutical products.
The $294.7 million in sanctions authorized by the WTO is significantly lower than the $2.5 billion in trade retaliation Brazil sought.
In response to the WTO decision, the National Cotton Council argues that the WTO’s action was based on 4 year-old data and doesn’t reflect any of the changes to the US cotton program made by the 2008 Farm Bill. (Contact: Amy Mann and Amy Mann)