AGRIBUSINESS: Brazil Preps For Trade Retaliation
No farm bill doesn’t just mean uncertainty for U.S farmers. It also means no payments made to Brazil as part of a World Trade Organization dispute over U.S. cotton subsidies.
Brazil’s Trade Ministry now says the first steps toward trade retaliation will begin in January.
The U.S. had been paying Brazil’s Cotton Institute $12 million monthly to stave off retaliation in other forms. The payments followed a WTO ruling in 2009, which determined Brazil had the right to retaliate due to unfair American cotton subsidies.
The Brazilian Trade ministry says a work group is preparing possible measures to implement and will complete preparations by the end of February.