The U.S. and Brazil have signed a deal that will delay for two months any Brazilian sanctions on American goods because of a dispute over cotton subsidies, according to AP. The U.S. Embassy in Brazil said Thursday the agreement establishes a fund for technical assistance and capacity building for Brazil's cotton sector. The U.S. will pay $147 million per year to Brazil for the fund, which was made public April 6. The Brazilian government brought the cotton case to the World Trade Organization in 2002. The WTO saids Brazil can take punitive action because the U.S. has failed to get rid of illegal subsidies provided to cotton farmers. The WTO authorized Brazil to impose a total of $829 million in annual sanctions.
