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Brazil Seeks Permission to Sanction U.S. Goods over WTO Cotton Case

Up to $4 billion in trade sanctions is being sought by Brazil.

Paperwork filed Monday with the World Trade Organization has asked the body to allow Brazil to impose $4 billion in sanctions against U.S. goods and services over cotton subsidies.

The U.S. lost its final appeal of the case against subsidies to U.S. cotton growers that began six years ago. Brazil is asking the WTO to restart the Brazil actions against the U.S. from 2005 that were suspended while the U.S. was given time to comply with WTO rules concerning the cotton program.

Although the U.S. has exhausted the appeals process under WTO rules, they can still ask for a lower number than Brazil has requested. A spokesman for the U.S. Trade Representative says the office will consult with members of Congress before taking any steps, but would vigorously defend American interests in the coming weeks.

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