Brazil Suspends Retaliation For Us Cotton Subsidies
On Thursday, Brazil suspended the retaliation of US goods on cotton subsidies. The time was postponed to 2012, providing more time for the United States to solve the thorny problems in agricultural reform.
The government said that the two sides agreed in April to suspend WTO's ratification of trade retaliation against us goods for 829 million dollars, waiting for the adoption of the new US agricultural law.
At present, the US agricultural law will expire in September 30, 2012, which includes subsidies for us cotton producers. It is ruled by the WTO that it is too high to be an illegal subsidy.
Under the agreement, the United States promises to pfer some short-term adjustments to export credit guarantees, providing Brazil with about $147 million a year as a technical aid fund for cotton farmers to compensate for the losses.
If the United States fails to comply with the agreement, Brazil can retaliate at any time, but Brazil has no interest in revenge.
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