Brazil Property News: Major victory for Brazil against US




16th October 2007 02:53


The World Trade Organisation (WTO) has ruled in favour of Brazil in an ongoing dispute after the country claimed that illegal US subsidies have affected world prices of cotton.

Billions of dollars in trade sanctions could be available to Latin America’s largest economy due to the findings that the US farming subsidies detrimentally affected Brazil cotton industry, reports the Associated Press.

The WTO said that the 2006 ruling in the US Congress to reduce some cotton support for farmers had not gone far enough to combat the problem.

Brazilian officials have claimed in the past that the US has retained its place as the world's second-largest cotton producer, behind China, by paying $12.5 billion (£6.1 billion) in subsidies to farmers between 1999 and 2003.

Developing nations India, Brazil and South Africa (IBSA) will attend a summit in Pretoria, South Africa this week to strengthen their trade links.

The nations’ heads of state have hinted at plans to improve their aviation and maritime links during talks.

Currently the trade volume between the three countries is estimated to stand between $6 billion (£2.94 billion) and $7 billion (£3.4 billion) with a goal to increase this figure to $10 billion (£4.9 billion) by 2017.

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