Home breadcru News breadcru Association/Org breadcru USTR seeks comments on Brazil's objection over US cotton subsidues

USTR seeks comments on Brazil's objection over US cotton subsidues

10 Oct '06
3 min read

Daniel E Brinza, Assistant United States Trade Representative, for Monitoring and Enforcement has issued notice seeking public comments on WTO Dispute Settlement proceeding regarding United States subsidies to Upland Cotton.

The notice states that "USTR invites written comments from the public concerning the issues raised in this dispute."

Brazil had earlier alleged that the United States has not fully complied with the recommendations and rulings of the Dispute Settlement Body from the original dispute avaiable online at WTO website designated as WT/DS267/R and WT/DS267/AB/R.

According to the notice Brazil contends that " the United States has failed to take appropriate steps to remove the adverse effects or withdraw the subsidies found to cause adverse effects. The United States failure to take these steps results in U.S. subsidies for upland cotton causing serious prejudice to the interests of Brazil, within the meaning of Articles 5(c) and 6.3 of the [Agreement on Subsidies and Countervailing Measures (`SCM Agreeement')."

Brazil contends that the U.S. subsidies at issue are "the U.S. marketing loan, counter-cyclical and Step 2 payment programs under the [Farm Security and Rural Investment Act (`FSRI Act')] of 2002, as amended, taken alone and/or considered together, as well as payments made under these programs. * * *"

Noting the repeal of the Step 2 program effective August 1, 2006, Brazil contends, in the alternative, that the U.S. subsidies at issue are "the U.S. marketing loan and counter-cyclical payment programs under the FSRI Act of 2002, as amended, as well as payments made under these programs. * * *"

Get Free Weekly Market Insights Newsletter

Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!