Brazil has approached
the World Trade Organisation complaining against American subsidies, gasoline
rebates, tax breaks and export credits since 2001 - lodging its broadest attack
against US trade barriers.
payments that support prices for wheat, rice, oats, hogs, sheep, beef and dairy
products in the US may have exceeded the combined spending allowed by the WTO,
WTO rules, the US is allowed to spend a maximum of $19.1 billion a year on such
assistance. US farm subsidies stayed below that ceiling until 2001 after which
it hasn''t filed any spending figures with the Geneva-based WTO, Brazil said in
public information indicates that the domestic support that the US provided exceeded
its commitment levels,'''' Brazil''s WTO ambassador Clodoaldo Hugueney wrote to his
US counterpart Peter Allgeier.
complaint comes after the collapse of negotiations among the US, the EU, India
and Brazil to reach an agreement on the course of the Doha Round of global trade
Developing countries led by India and Brazil have sought a reduction
in rich nations'' farm subsidies and tariffs on commodity imports. Brazil wanted
the US to lower its spending below a $17 billion offer.
has already led successful WTO complaints against US cotton programmes worth about
$4 billion a year.
month, Canada had sought WTO intervention to settle a claim that the US is exceeding
the $19.1 billion annual cap on farm subsidies.
''s complaint is in the form of a request for negotiations to resolve the dispute.
parties fail to resolve the dispute in at least two months and consultations fail,
Brazil can seek a WTO ruling on the dispute.