PDF _ RS22728 - Brazil’s WTO Case Against U.S. Agricultural Support: A Brief Overview
21-Sep-2007; Randy Schnepf ; 6 p.

Abstract: On July 11, 2007, Brazil requested consultations with the United States, under World Trade Organization (WTO) dispute settlement rules, to discuss two charges against U.S. farm programs — first, that the United States has exceeded its annual commitment levels for the total aggregate measure of support (AMS) in each of the years 1999, 2000, 2001, 2002, 2004, and 2005, and second, that the U.S. export credit guarantee program operates as a WTO-illegal export subsidy. Both charges stem from a previous successful challenge by Brazil of the U.S. cotton program (DS267). Canada is currently pursuing a similar case against the United States.1 Brazil initially had joined Canada’s case as an interested “third party,” but has since chosen to pursue its own case.

A 60-day consultation period ended with no mutual agreement between Brazil and the United States. Brazil is now free to request the establishment of a WTO panel to rule on its complaint, but has not as yet done so. Should Brazil successfully pursue this case, any changes in U.S. farm policy to comply with a WTO ruling would likely involve action by Congress to produce new legislation. This report will be updated as events warrant.  [read report]

Topics: Economics & Trade, Agriculture, International

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