Brazil's Final List of U.S. Products Subject to Add'l Duties Due to Cotton Dispute Delayed
Brazil's Ministry of Development, Industry and Foreign Trade (MDIC) has announced a delay in the finalization of the list of U.S. products that could be subject to additional duties of up to 100%, as the U.S. has not complied with World Trade Organization findings in the upland cotton dispute.1
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Brazil Delays Meeting to Finalize List and Total Value Until February 2010
MDIC states that Brazil's Foreign Trade Chamber (CAMEX) decided to finalize its list of U.S. products that would be subject to the retaliatory duties at its February 2010 meeting, instead of its December 15, 2009 meeting.
During the February meeting, CAMEX will also determine the date it will implement the additional duties and set the total value of retaliation.
Value of Retaliation Could be Twice What Was Previously Announced
CAMEX's Executive Secretary Spndola stated that the final value of the amount of retaliatory duties could vary, depending on the year on which Brazil bases its calculations. If CAMEX uses fiscal year 2008 data from the U.S., the value of the retaliatory duties could be $829 million dollars (from the $450 million announced previously). By February, CAMEX will also have 2009 data to consider.
95% of Comments on Preliminary List Were to Remove Products
CAMEX also noted that 95% of the 768 comments it received on its preliminary list were to remove specific products from it.
U.S. Stated it Intends to Comply with WTO Ruling, Work with Brazil to Avoid Add'l Duties
In November 2009, U.S. Diplomat to the World Trade Organization Millan told the WTO dispute settlement body that the U.S. intends to comply in the U.S.-Brazil cotton dispute and therefore, Brazil would not need to levy its WTO-authorized sanctions.
The Office of the U.S. Trade Representative also announced that it is interested in working with Brazil to identify a solution without Brazil applying countermeasures.
1In August 2009, the World Trade Organization (WTO) authorized Brazil to impose millions in countermeasures against the U.S. due to its failure to comply in the U.S.-Brazil cotton dispute, and on November 6, 2009, CAMEX issued a notice seeking comment on a preliminary list of 222 U.S. products for possible retaliation. See ITT's Online Archives or 11/12/09 and 11/16/09 news, 09111205 and (09111620), for BP summaries.
(See ITT's Online Archives or 12/10/09 news, 09121005, for most recent BP summary on Brazil's process to finalize this list of U.S. products.)
MDIC press release (in Portuguese, dated 12/16/09) available at http://www.mdic.gov.br/sitio/interna/noticia.php?area=1¬icia=9524