Brazil and U.S. resolve cotton trade dispute
WASHINGTON, D.C. (BDCi) – After a decade-long fight over trade subsidies provided to U.S. cotton growers, Brazil and the United States have resolved their issues.
In 2002, Brazil brought a case against the U.S., charging that cotton subsidies were a violation of global trade rules.
The World Trade Organization ruled in favor of Brazil and the United States had been forced to make $147 million in payments to the South American country every year.
Under the new terms, the U.S. will make a final payment of $300 million to Brazil and Brazil will drop the cotton case against the U.S. and not bring new actions against cotton support programs.
Brazil and the United States had been discussing ideas for resolving the dispute over the past few months.