Finally, all those years after Brazil won a victory against the US in the WTO on the subject of cotton subsidies, the South American nation has been granted permission to impose sanctions of approximately 295 million dollars.
Here's where it may have it's strongest impact against the US:
[Brazil's Ambassador to the WTO, Roberto] Azevedo explained that some of the sanctions can only be applied to
goods while others can <i>to a limited extent, target intellectual
property and services</i>.
"We ... find that it is regrettable that
the United States has not yet complied with the determination of the
multilateral trading system after the US subsidies have been condemned
several times," he said.
"In our view this continued disregard of
WTO rules by a key member of the WTO is a cause for concern" in the
midst of negotiations to try to revive the Doha Round of trade
liberalisation talks, said Azevedo. [my emphasis]
This may be one of the US's largest exports to Brazil and the impact, while significantly diminished from Brazil's request, could be significant.
As for this comment by the US trade representative,
President Barack Obama's administration "will be actively consulting
within the US government and with stakeholders on how to move forward"
on the issue, said Carol Guthrie, spokeswoman for the US Trade
Representative.
There's a simple solution to this: get rid of the subsidies. Once they're gone so are the sanctions.
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