2012 Farm Bill: Trade
Alan Beattie reported on Friday at the Financial Times Online that, “Brazil said on Thursday that it would suspend sanctions on US imports in retaliation for illegal American cotton subsidies, temporarily defusing one of the most contentious disputes in international trade.
“The deal will extend until 2012 a holding arrangement in which the US pays Brazilian farmers $147.3m a year and promises to cut subsidies in future. In return, Brazil will hold off imposing blocks on imports or ignoring patents and copyrights, which it is entitled to do after a World Trade Organisation panel declared the US cotton support programme illegal.
“Brazilian officials said they expected permanent reforms to be introduced when US agricultural support was revised in the five-yearly ‘farm bill,’ which is next renewed in 2012. ‘This is not a final solution, but it lays out elements that will allow for consultations and reforms to the farm bill that will take place by the end of 2012,’ Roberto Azevedo, Brazil’s ambassador to the WTO, said. ‘Brazil doesn’t rule out taking countermeasures at any moment.’”