Weekly Report - 02 October 2014 (WR-14-39)

BRAZIL | Cotton subsidies trade war ends. A 12-year dispute between the US and Brazil over cotton subsidies finally came to an end on 1 October. Under the terms of the agreement signed between the two countries, Brazil has promised to no longer pursue its complaints about US support for the sector at the World Trade Organization (WTO). In return, the US will pay the Brazilian Cotton Institute a lump sum of around US$300m. More significantly, from Brazil’s perspective, the US has also committed itself not to extend credit guarantees for export for a period of more than 18 months. In the past its credit guarantees ran for up to three years.