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End to Brazil/U.S. cotton dispute
U.S. Ag Secretary Tom Vilsack and U.S. Trade Representative Michael Froman announced the settlement today in which the U.S. will make a one-time payment of $300 Million dollars to the Brazilian Cotton Institute – an assistance fund for Brazilian farmers.
In turn, Brazil agrees to give up the right to retaliate against the U.S. with higher tariffs on U.S. products. It also agrees not to bring up new WTO actions against U.S. cotton support programs while the current Farm Bill is in force.
The U.S. had agreed to pay Brazil about 150-million a year but because of the budget sequester, payments were stopped. The dispute – in which the WTO found the U.S. had violated international trade rules – began in 2005.
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