Ten years ago, Brazil challenged the U.S. cotton policy to the World Trade Organization (WTO), but has now come to a new agreement to end the dispute.
Under the agreement, Brazil will terminate the cotton case, giving up its rights to countermeasures against U.S. trade or any further proceedings. Brazil will bring no new WTO actions against U.S. cotton support programs while the current U.S. Farm Bill is in force, reports Southwest Farm Press.
Through this negotiated solution, the United States and Brazil can finally put this dispute behind us, said Agriculture Secretary Tom Vilsack. Without this agreement, American businesses, including agricultural businesses and producers, could have faced countermeasures in the way of increased tariffs totaling hundreds of millions of dollars every year. This removes that threat and ensures American cotton farmers will have effective risk management tools.
“(The) agreement brings to a close a matter which put hundreds of millions of dollars in U.S. exports at risk. The United States and Brazil look forward to building on this significant progress in our bilateral economic relationship. said U.S. Trade Representative Michael Froman.