LatinWeek

Brazil: On 6 April, the US government announced it had reached a preliminary agreement with Brazil to resolve the longstanding bilateral dispute over US subsidies for domestic cotton producers. Under the agreement Brazil would waive until 22 April US$829m in pending retaliatory tariffs on imports of US cosmetics, cars, food and appliances. The tariffs followed a World Trade Organisation (WTO) ruling in Brazil's favour in the dispute. The tariffs will be waived for a further 60 days thereafter if negotiations continue to move forward. For its part, the US has so far agreed to: create an annual fund of US$147.3m to provide technical assistance to the Brazilian cotton industry; review and modify its export credit guarantees for domestic producers; declare the Brazilian state of Santa Catarina 'Foot and Mouth disease free' and; complete a study into the possibility of the US importing fresh meat from Brazil.