LatinNews Daily Report - 09 October 2014

Brazil: On 1 October the US reached a US$300m agreement with Brazil, ending a 12-year dispute over cotton subsidies. Under the agreement, Brazil promised to no longer pursue its complaints about US support for the domestic cotton sector at the World Trade Organization (WTO). In return, the US will pay the Brazilian Cotton Institute a lump sum of some US$300m. More significantly, from Brazil’s perspective, the US also committed itself not to extend export credit guarantees for a period of more than 18 months. In the past, such credit guarantees ran for up to three years. US Trade Representative Michael Froman said the agreement “brings to a close a matter which put hundreds of millions of dollars in US exports at risk,”, adding that ‘The United States and Brazil look forward to building on this significant progress in our bilateral economic relationship.’

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