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Texas Agriculture Archive

February 21, 2003

Brazil targets U.S. cotton

Brazilian officials have decided to request a World Trade Organization dispute panel rule on its claim that the United States is providing subsidies to its cotton producers in violation of WTO rules.

Brazil contends that subsidies to U.S. cotton producers have caused overproduction in the United States and a big increase in U.S. cotton exports.

Brazil also says the subsidies have contributed to the decline of cotton prices throughout the world.

Brazil's request was on the agenda for a February meeting of the WTO's Dispute Settlement Body. Officials from the United States and Brazil met last December to reach an agreement over the subsidies but were unsuccessful.