US and Brazil resolve prolonged cotton trade fight
WASHINGTON (AP) — The United States and Brazil have resolved a decade-long trade battle over subsidies Washington provided to U.S. cotton growers.
The agreement resolves a bitter trade fight that had strained relations between the two countries since 2002, when Brazil brought a case against the United States charging that U.S. cotton subsidies were a violation of global trade rules. The World Trade Organization ruled in Brazil's favor and the United States had been forced to make annual $147 million payments to Brazil.
U.S. Trade Representative Michael Froman, Agriculture Secretary Tom Vilsack and their Brazilian counterparts signed the agreement Wednesday in Washington. Under the agreement, the United States will make a final one-time payment of $300 million and Brazil will drop the cotton case.