U.S.-Brazil agreement won’t affect Brazil developing country status | TSLN.com

U.S.-Brazil agreement won’t affect Brazil developing country status

Brazil’s agreement with the United States to forgo special treatment by the World Trade Organization would apply only to future negotiations within the multilateral trade body and not affect its status as a “developing country,” World Trade Organization Director General Roberto Azevedo told Reuters on Wednesday.

Brazil’s self-defined status as a “developing” country has allowed it to subsidize up to 10 percent of its agricultural output, whereas the limit for “developed” nations is 5 percent, Azevedo noted.

U.S. farm leaders have complained that Brazil’s status as a developing country allows it to subsidize unfairly and should be adjusted since the country has become wealthier than when it was granted that status.

–The Hagstrom Report