Brazil Finalizes Retaliation List in WTO Cotton Dispute, U.S. to Propose Solutions
On March 8, 2010, Brazil's Foreign Trade Chamber (CAMEX) published its final list of U.S. products that are set to be subject to increased duties of up to 100% in 30 days, due to the U.S.' noncompliance in the World Trade Organization upland cotton dispute.1
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Details regarding the list, including the total dollar value, are expected to be discussed at a press conference to be held later on March 8, 2010.
(CAMEX has previously stated it would narrow its original proposed list of 222 U.S. products valued at $2.7 billion to approximately $560 million in value.)
Increased Duties to Affect Certain Cotton, Apparel, Food, Cosmetics, Etc.
The increased duties, which are set to take effect 30 days from March 8, 2010, will be imposed on over 100 tariff numbers and range from 12 to 100%, though most average around 30%. The increased duties are set to affect certain of the following products (partial list):
| Product | Current Duty | \"U.S. Duty\" |
|---|---|---|
| cotton | 6% | 100% |
| cotton fabric | 26% | 100% |
| cotton pants, men's and women's | 35% | 100% |
| freezers | 20% | 40% |
| lawnmowers | 18% | 36% |
| Beauty creams | 18% | 36% |
| Medicine with Paracetamol | 14% | 28% |
| Processed potatoes | 14% | 34% |
| Wheat | 10% | 30% |
| Fresh pears | 10% | 30% |
| Ketchup | 18% | 38% |
U.S. Hoping for Resolution Before Brazilian Retaliation Comes into Effect
In a recent press conference with Brazilian Foreign Minister Celso, U.S. Secretary of State Clinton stated that the U.S. would be sending two high-level officials during the week of March 8, 2010 to discuss a proposal for resolving the dispute.
Secretary Clinton states that as the Brazilian action would not come into effect for 30 days, there is time for the two sides to try to resolve this issue in a peaceful and productive way without any further action.
As there is so much trade between the two countries, and it is an area of such potential growth, Secretary Clinton hopes the two sides are able to get to a resolution, starting with the official visits.
1In August 2009, the 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. (See ITT's Online Archives or 09/01/09 news, 09090110, for BP summary.)
(See ITT's Online Archives or 03/02/10 and 02/11/10 news, 10030220 and 10021105, for most recent BP summaries of CAMEX delaying finalization of the list.
See ITT's Online Archives or 11/16/09 and 11/12/09 news, 09111620 and 09111205, for BP summaries of Brazil's preliminary list of 222 U.S. products considered for possible increased duties.)
State Dept. transcript of remarks (dated 03/03/10) available at http://www.state.gov/secretary/rm/2010/03/137774.htm
MDIC press release (with final list of U.S. goods - in Portuguese) (dated 03/08/10) available at http://www.mdic.gov.br/sitio/interna/noticia.php?area=1¬icia=9642