Brazil appeals for WTO sanctions on US cotton

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RIO DE JANEIRO, Aug 27 (Xinhua): Brazil appealed Tuesday for World Trade Organisation (WTO) sanctions of up to 4 billion US dollars on the United States for the subsidies the US government has paid to its cotton farmers.

Brazil recently won a six-year dispute with the US within the WTO over the subsidies, which it says have distorted the cotton price in the international market.

Brazil claimed that the subsidies had unfairly boosted cotton production in the United States while harming Brazilian farmers.

In June, the WTO made a final decision on the issue, declaring the US cotton subsidies illegal and clearing the way for Brazil to seek trade sanctions.

Brazil appealed for sanctions as early as 2005. The request was later suspended due to an agreement between the two countries which, in the end, was never fulfilled.

The Brazilian government had hoped to solve the dispute in the latest Doha round negotiations in July in Geneva. As the talks collapsed and no agreement was reached, Brazil decided to seek the trade sanctions.

Meanwhile, Brazilian Foreign Minister Celso Amorim said Friday that Brazil is considering starting another case with the United States over the tariffs it imposes on Brazilian ethanol.