Brazil To Impose Cotton Sanctions

Brazil has moved to retaliate against the U.S. over cotton subsidies; however, the country said the U.S. can settle the trade dispute through negotiations. The U.S. has 30 days to do so or Brazilian wheat tariffs will be increased to 30%. The World Trade Organization gave Brazil the formal go-ahead last year to impose sanctions on U.S. imports after the body ruled that the U.S. government spent too much subsidizing cotton farmers and on an export credit guarantee program.

A spokeswoman for the Office of the U.S. Trade Representative said they have worked to reach a solution to the issues in this dispute without Brazil resorting to countermeasures and continues to prefer a negotiated solution. The National Cotton Council said Brazil’s proposed tariff will impose unwarranted harm on Brazilian and American interests in times of economic hardship for all. U.S. cotton’s share of the retaliation is relatively small and fixed at $147 million.