Brazil Suspends Tariffs on U.S. Imports
Countries will try to work out cotton dispute through quarterly meetings.
Compiled by staff
Published: Jun 18, 2010
Brazil has suspended the $820 million in tariffs on U.S. imports that were imposed over the dispute on cotton subsidies. The countries have agreed to a framework to meet quarterly and try to resolve cotton issues as the 2012 Farm Bill is being worked on by Congress.
"This framework agreement provides a way forward as we work with Congress toward a new farm bill in 2012," Agriculture Secretary Tom Vilsack said in a joint USDA/U.S. Trade Representative statement. "Although it is not a permanent solution, I am pleased that it allows us to maintain our programs while considering adjustments and avoiding the immediate imposition of countermeasures against U.S. exports."
The agreement was struck before $560 million of the tariffs were set to go into effect next Tuesday, June 22. The new framework will continue the temporary agreement from April 1 that postponed sanctions following the World Trade Organization ruling in Brazil's favor over U.S. cotton programs.
"We will work with Congress and the Administration on the 2012 farm bill,” said National Cotton Council Chairman Eddie Smith, “in order to develop cotton policy that will continue to provide the safety net needed by U.S. farmers while helping assure our trading partners that U.S. cotton programs do not cause unfair trade distortions in the world cotton market."
The long-running Brazilian WTO cotton case, which began in 2005, has been broadly viewed as a forerunner to additional WTO challenges to U.S. farm subsidies programs.
Source: Feedstuffs
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Tagged: cotton, farm, farm bill, usda, cotton subsidies
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