Brazil announced today that it would slap 591 million dollars worth of import tariffs on a range of US goods, the latest step in a long-standing dispute over Washington's cotton subsidies, according to dpa. Brazil, in a statement from its mission to the World Trade Organization (WTO) in Geneva, also warned it would "in the near term" impose separate measures related to intellectual property rights, adding up to 238 million dollars. The move comes after the WTO authorized Brazil to impose up to 829 million dollars in tariffs on US goods over Washington's failure to implement rulings against subsidies to its cotton farmers. It was the second-largest retaliatory measure awarded by the global trade body. The aim of the tariff increases is to convince Washington to remove illegal subsidies on cotton, said Carlos Marcio Cozendey, director of the Economics Department at the Brazilian Finance Ministry. He said in recent weeks there have been indications of US disposition for dialogue, although without a concrete proposal. "Commercial retaliation is not the most appropriate means to achieve international trade with a fairer base," Brazilian authorities said. However, "after almost eight years of dispute and over four years of non-fulfilment by the United States of the decisions of the conflict-solving organ (of the WTO)," Brasilia noted, Brazil is left with the option of "making its rights prevail." The US is the third-largest producer of cotton in the world and makes up a significant proportion of global cotton exports. A spokeswoman for the office of the US Trade Representative (USTR) rejected Brazil's latest move and pushed for more talks. We are disappointed to learn that Brazil's authorities have decided to proceed with countermeasures against US trade in the WTO cotton dispute," she said in a statement from Washington. "USTR has worked to reach a solution to the issues in this dispute without Brazil resorting to countermeasures and we continue to prefer a negotiated solution." Brazilian farmers had complained subsidies in the US were hurting their business and violating trade rules. Litigation, including at the WTO, has been ongoing for nearly eight years. Brazil said that while it "regrets" taking the measures it was left with little option following US "non-compliance" with WTO rulings, but remained open to dialogue with Washington. "The authorized countermeasures may remain in effect as long as the United States persists in the current situation of non-compliance with" WTO rules, the statement said. On the list of US goods to be subject to higher import tariffs were fresh agricultural foodstuffs, some medicines and medical devices, clothing, beauty products, electronic goods and other imports. "We have tried to avoid putting on the list inputs and intermediate goods. Most of the products affected are final consumption goods," said Brazilian Foreign Trade Secretary Lytha Spindola. Tariff increases would go into effect in 30 days, and would see import duties double or triple in many cases.
