Brazil: WTO rules against U.S. subsidies

Brazil's cotton industry gained a very important victory when a World Trade Organization (WTO) panel ruled against “illegal” U.S. farm subsidies. According to the WTO’s verdict, insufficiently reformed its cotton subsidies, thus affecting world prices and hurting farmers worldwide.

Brazil’s Foreign Ministry expressed their satisfaction with the WTO’s decision:

"The final ruling confirmed Brazil's view that the U.S. measures were insufficient to comply with the panel's original decision," Brazil's foreign ministry said in a statement.

"The full implementation of the (panel's) recommendations is a fundamental prerequisite for the credibility of the multilateral trade system," it added.

Despite the victory, Brazil's chief farm lobby urged the government to make concessions in order to overcome the impasse between developing and developed countries over free trade. Yet as we noted last week it may be too late to overcome trade differences.

Sources- AFP, BBC News, Reuters, Reuters India, The Latin Americanist

Image- ABC News Online