Brazil Will Request WTO To Inspect The New US Agriculture Act And Cotton Measures.

The US agriculture bill act 2014 ended the so-called direct subsidy (the government subsidized the financial subsidies directly to farmers or directly benefited the farmers), so as to successfully resolve the dispute over the Cotton Subsidy between the US and Pakistan for many years in WTO.

However, in order to reduce the tariffs on cotton fabrics higher than the damage done by local cotton manufacturers to local manufacturers, the US government's new agriculture bill provides us $16 million annually for 5 years in the Pima agricultural cotton trust fund.

Brazil Foreign Trade Chamber of Commerce (Camex) issued a statement that, according to the preliminary assessment of the government of Brazil, the US new version of the agriculture bill is afraid of retaining the "subsidy measures to distort the international cotton trade".

In 2009, WTO ruled that the US cotton subsidy was illegal and authorized Brazil to impose trade sanctions against us goods and collect retaliatory tariffs amounting to US $830 million a year.

But Brazil has postponed its adoption to the United States. WTO The authorized trade retaliation measures are partly due to the annual US $147 million 300 thousand fund provided to cotton farmers in Brazil for technical assistance and capacity building in Brazil's cotton industry. However, after the US 2008 agricultural bill expired at the end of September 2013, the United States had suspended payment of the technical assistance fund of Brazil. Meanwhile, Brazil also hoped that the new US farm bill could abolish cotton subsidies for a long time.

　　 Brazil It is planning to request WTO to examine whether the new US agriculture act meets the WTO dispute settlement body's proposed practice.

However, the National Cotton Council (NCC) said that in order to comply with the ruling of WTO, the new US agriculture act has made some amendments to the cotton policy.

NCC President Wally Darneille said, "the changes we have made are remarkable. We believe that the problem can be resolved." we are encouraged by the fact that Brazil officials will give priority to solving problems through continuous discussions instead of retaliatory actions. We urge American officials to continue consultations and agreements with the Palestinians on this issue.