News

Brazil puts trade retaliation on hold

Brazil reportedly has suspended its retaliation against U.S. goods in the cotton subsidy dispute. Reuters reports the deal between the U.S. and Brazil reached in April will continue until the U.S. passes its next Farm Bill. The countries agreed that the WTO-approved retaliation against U.S. goods, up to $829 Million dollars worth, would be put on hold.

The U.S. has agreed to make some favorable changes to its export credit guarantees while giving Brazil about $147 million in damages a year for a technical assistance fund for cotton growers.

A Brazilian government spokesman tells Reuters the country is not giving up its right to sanctions against the U.S., but is willing to see how Congress acts on the 2012 Farm Bill.

Last year, the World Trade Organization ruled that Brazil could retaliate after the WTO found U.S. cotton subsidies and export guarantee program were illegal.