{
  "id": "RL32571",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL32571",
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  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
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      "id": 394100,
      "date": "2011-11-22",
      "retrieved": "2016-04-07T00:27:51.898782",
      "title": "Brazil\u2019s WTO Case Against the U.S. Cotton Program",
      "summary": "The so-called \u201cBrazil cotton case\u201d is a long-running World Trade Organization (WTO) dispute settlement case (DS267) initiated by Brazil\u2014a major cotton export competitor\u2014in 2002 against specific provisions of the U.S. cotton program. In September 2004, a WTO dispute settlement panel found that certain U.S. agricultural support payments and guarantees\u2014including (1) payments to cotton producers under the marketing loan and counter-cyclical programs, and (2) export credit guarantees under the GSM-102 program\u2014were inconsistent with WTO commitments. In 2005, the United States made several changes to both its cotton and GSM-102 programs in an attempt to bring them into compliance with WTO recommendations. However, Brazil argued that the U.S. response was inadequate. A WTO compliance panel ruled in favor of Brazil\u2019s non-compliance charge against the United States in December 2007, and the ruling was upheld on appeal in June 2008. \nIn August 2009, a WTO arbitration panel\u2014assigned to determine the appropriate level of retaliation\u2014announced that Brazil\u2019s trade countermeasures against U.S. goods and services could include two components: (1) a fixed amount of $147.3 million in response to U.S. cotton program payments, and (2) a variable amount based on U.S. GSM-102 program spending. In response to Brazil\u2019s argument that insufficient trade in goods occurred between the two countries, the arbitrators also ruled that Brazil would be entitled to cross-retaliation if the overall retaliation amount exceeded a formula-based variable annual threshold. Cross-retaliation involves countermeasures in sectors outside of the trade in goods, most notably in the area of U.S. copyrights and patents. Based on the arbitrators\u2019 formulas, using 2008 data, Brazil announced in December 2009 that it would impose trade retaliation starting on April 6, 2010, against up to $829.3 million in U.S. goods, including $268.3 million in eligible cross-retaliatory countermeasures. \nThe threat of sanctions led to intense negotiations between Brazil and the United States to find a mutual agreement and avoid the trade retaliation. In April 2010, the two parties reached a preliminary memorandum of understanding (MOU) spelling out certain actions which, if undertaken by the United States, would lead to suspension of Brazil\u2019s threatened retaliation. Then, on June 17, 2010, U.S. and Brazilian trade negotiators concluded the Framework for a Mutually Agreed Solution to the Cotton Dispute in the WTO (WT/DS267). The framework agreement\u2014which lays out a number of \u201csteps and discussions\u201d\u2014represents a path forward toward the ultimate goal of reaching a negotiated solution to the dispute, while avoiding WTO-sanctioned trade retaliation by Brazil against U.S. goods and services. As a result, Brazil has suspended trade retaliation pending U.S. compliance with the framework agreement measures. Key aspects of the framework agreement include (1) payment by the United States of a $147.3 million annual fund to a newly created \u201cBrazilian Cotton Institute\u201d to provide technical assistance and capacity-building for Brazil\u2019s cotton sector, (2) quarterly discussions on potential limits of trade-distorting U.S. cotton subsidies (recognizing that actual changes will not occur prior to the 2012 farm bill), and (3) near-term modifications to the operation of the GSM-102 program coupled with a semi-annual review of whether U.S. GSM-102 program implementation satisfies certain performance benchmarks. \nThese U.S. commitments are intended to delay any trade retaliation until after the 2012 farm bill, when potential changes to U.S. cotton programs will be evaluated. However, in the interim, several failed legislative attempts have been made to ban U.S. payments to the Brazil Cotton Institute.",
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc819760/",
      "id": "RL32571_2011Jun21",
      "date": "2011-06-21",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Brazil\u2019s WTO Case Against the U.S. Cotton Program",
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      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc461934/",
      "id": "RL32571_2011Jan05",
      "date": "2011-01-05",
      "retrieved": "2014-12-05T09:57:41",
      "title": "Brazil's WTO Case Against the U.S. Cotton Program",
      "summary": "This report provides a description and status report on Brazil's challenge to certain aspects of the U.S. cotton program under the rules of the World Trade Organization's (WTO's) dispute settlement process in case DS267.1 The \"Brazil cotton case\" had its WTO origins in 2002 and has since evolved into a sprawling legal enterprise that is still ongoing as of early 2011.",
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      "topics": [
        {
          "source": "LIV",
          "id": "International affairs",
          "name": "International affairs"
        },
        {
          "source": "LIV",
          "id": "Dispute settlement",
          "name": "Dispute settlement"
        },
        {
          "source": "LIV",
          "id": "Agriculture",
          "name": "Agriculture"
        },
        {
          "source": "LIV",
          "id": "International agricultural cooperation",
          "name": "International agricultural cooperation"
        },
        {
          "source": "LIV",
          "id": "Cotton production",
          "name": "Cotton production"
        },
        {
          "source": "LIV",
          "id": "Agricultural agreements",
          "name": "Agricultural agreements"
        },
        {
          "source": "LIV",
          "id": "Foreign relations -- Brazil -- U.S.",
          "name": "Foreign relations -- Brazil -- U.S."
        },
        {
          "source": "LIV",
          "id": "Foreign relations -- U.S. -- Brazil",
          "name": "Foreign relations -- U.S. -- Brazil"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc809669/",
      "id": "RL32571_2010Jun30",
      "date": "2010-06-30",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Brazil\u2019s WTO Case Against the U.S. Cotton Program",
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      "type": "CRS Report",
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc627121/",
      "id": "RL32571_2010Jan04",
      "date": "2010-01-04",
      "retrieved": "2015-06-15T14:46:40",
      "title": "Brazil's WTO Case Against the U.S. Cotton Program",
      "summary": "This report provides a description and status report on Brazil's challenge to certain aspects of the U.S. cotton program under the rules of the World Trade Organization's (WTO's) dispute settlement process in case DS267. The \"Brazil cotton case\" had its WTO origins in 2002 and has since evolved into a sprawling legal enterprise that is still ongoing as of mid-2010.",
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      "active": false,
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          "source": "LIV",
          "id": "Agricultural agreements",
          "name": "Agricultural agreements"
        },
        {
          "source": "LIV",
          "id": "Agriculture",
          "name": "Agriculture"
        },
        {
          "source": "LIV",
          "id": "Cotton production",
          "name": "Cotton production"
        },
        {
          "source": "LIV",
          "id": "Dispute settlement",
          "name": "Dispute settlement"
        },
        {
          "source": "LIV",
          "id": "Foreign relations -- Brazil -- U.S.",
          "name": "Foreign relations -- Brazil -- U.S."
        },
        {
          "source": "LIV",
          "id": "Foreign relations -- U.S. -- Brazil",
          "name": "Foreign relations -- U.S. -- Brazil"
        },
        {
          "source": "LIV",
          "id": "International agricultural cooperation",
          "name": "International agricultural cooperation"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc818560/",
      "id": "RL32571_2008Jun17",
      "date": "2008-06-17",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Brazil\u2019s WTO Case Against the U.S. Cotton Program",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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      "topics": []
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc820311/",
      "id": "RL32571_2007Oct16",
      "date": "2007-10-16",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Brazil\u2019s WTO Case Against the U.S. Cotton Program",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs9103/",
      "id": "RL32571 2005-07-11",
      "date": "2005-07-11",
      "retrieved": "2006-08-10T14:51:34",
      "title": "Background on the U.S.-Brazil WTO Cotton Subsidy Dispute",
      "summary": "In late 2002, Brazil initiated a World Trade Organization (WTO) dispute settlement case (DS267) against specific provisions of the U.S. cotton program. This report provides background to the dispute, as well as details of the WTO dispute settlement case. It will not be updated. For information on the U.S. response to panel recommendations and their implications for the U.S. cotton sector, see CRS Report RS22187, U.S. Agricultural Policy Response to WTO Cotton Decision.",
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      ],
      "topics": [
        {
          "source": "LIV",
          "id": "Trade",
          "name": "Trade"
        },
        {
          "source": "LIV",
          "id": "Cotton",
          "name": "Cotton"
        },
        {
          "source": "LIV",
          "id": "Dispute settlement - Brazil - U.S.",
          "name": "Dispute settlement - Brazil - U.S."
        },
        {
          "source": "LIV",
          "id": "Dispute settlement - U.S. - Brazil",
          "name": "Dispute settlement - U.S. - Brazil"
        },
        {
          "source": "LIV",
          "id": "Export subsidies",
          "name": "Export subsidies"
        },
        {
          "source": "LIV",
          "id": "Agriculture",
          "name": "Agriculture"
        },
        {
          "source": "LIV",
          "id": "International affairs",
          "name": "International affairs"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc815564/",
      "id": "RL32571_2004Sep10",
      "date": "2004-09-10",
      "retrieved": "2016-03-19T13:57:26",
      "title": "U.S.-Brazil WTO Cotton Subsidy Dispute",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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    }
  ],
  "topics": [
    "Foreign Affairs"
  ]
}