Brazil says to ask WTO for panel on US cotton

The case gained a higher profile after last month's collapse of the Doha round of global trade talks. Analysts say that without the Doha agreement, legal wrangling between countries will likely rise at the WTO.

"Brazil will solicit a new panel at the WTO for the implementation of measures," Mario Mugnaini, executive director of the Brazilian government's foreign trade body, told journalists. "If the U.S. does not make its case, we'll ask for retaliation."

Mugnaini said Brazil will make its request on September 1 in Geneva. He said the United States will have between 90 and 120 days to respond.

U.S. Trade Representative Susan Schwab's office said it could not comment on the report.

Last week, the United States repealed the "Step 2" cotton support program, saying it thereby terminated export subsidies and import substitution subsidies cited by the WTO.

At that time, Brazil's Foreign Ministry said in a statement the repeal was "insufficient to fully comply with (WTO) determinations in the cotton case."

The WTO gave Washington until July 2005 to start eliminating the subsidies, but the Bush administration stalled.

In response, Brazil threatened to exercise its right to retaliate by imposing billions of dollars in trade sanctions on the United States. Brazil later held off on the sanctions to give Washington more time to comply.

Source: Washingtonpost.com