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Brazil to Impose Over US$ 4 Billion in Trade Sanctions Against US |
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Written by Lourenço Melo
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Friday, 07 October 2005 |
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Brazil wants to adopt a US$ 3 billion trade restriction against the United States regarding last year's harvest, according to a note, issued Thursday, October 6, by the Brazilian Ministry of Foreign Relations.
In the request made to the World Trade Organization (WTO) Dispute Settlement Body (DSB), Brazil claims that the US has not changed its subsidies policy regarding cotton producers.
Brazil also wants to apply yearly countermeasures of US$ 1,037 billion, because of US protectionism on exports credit policy. The compensation Brazil seeks would be estimated based on the requests presented by that country's exporters, says the note.
The DSB meeting that will discuss the request is scheduled for October 18th, and in case the US presents objections to any element of the Brazilian request, arbitration will be determined by the DSB, through the establishment of the amount and payment terms of the compensation.
Brazil wants to adopt restrictions not only in the goods area, as additional taxes on importation, but it also requests the possibility of suspending concessions and obligations on service trade agreements (GATTS) and on intellectual property area (Trade-Related Aspects of Intellectual Property Rights - TRIPS).
US subsidies reached US$ 12,5 billion between 1999 and 2002. Cotton harvest during this period was US$ 13,9 billion, which means an 89,5% subsidy. The US had until September 21st to remove subsidies or to eliminate its adverse effects, adds the Ministry's note.
Agência Brasil
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