U.S., Brazil Agree on Path to Settle Cotton Dispute

The United States and Brazil have agreed upon a path toward a negotiated settlement over a long-running cotton dispute. The dispute, brought by Brazil against the United States, was arbitrated by the World Trade Organization, which found agricultural subsidies were inconsistent with WTO commitments. The arbitration awards in the dispute allowed Brazil to provide countermeasures against U.S. trade. The latest agreement will allow the United States to establish a fund to provide technical assistance and capacity building in Brazil, while the Government of Brazil has agreed not to impose any countermeasures on U.S. trade on April 7. Review the press release.