Inside U.S. Trade: Brazil seeks $400 million in cotton case
Leaked documents described as internal Brazilian government papers indicate that Brasilia has taken up demands by domestic cotton growers that the United States pay hundreds of millions of dollars in order to finally settle a long- simmering World Trade Organization dispute over U.S. farm subsidies, Inside U.S. Trade reported today.
“Brazilian officials have declined to comment on the veracity of the documents, released on May 29 by the hacking group Anonymous,” Inside U.S. Trade said.
“Sources have indicated the papers are not fabricated, however, although it is still unclear whether they represent the negotiating position taken by Brazil in more recent face-to-face talks with U.S. officials,” the publication added.
“At the very least, the documents appear to show that Brasilia has considered taking an aggressive stance in the talks by demanding financial compensation to the tune of $400 million dollars.”
The papers also indicated that Brazil has given the United States until Wednesday to decide whether to accept its terms.
If no agreement is reached by next Friday, the report said, Brazil plans to seek a new panel to challenge the 2014 farm bill’s compliance with the WTO decision that said U.S. agricultural subsidy programs violated international trade rules and caused damage to Brazilian cotton farmers.
The paper also says Brazil is asking the United States to increase fees under the GSM 102 program that provides credit guarantees for U.S. agricultural exports.
–The Hagstrom Report
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