WTO's minor penalty dulls Brazil's victory in US trade tiff

A WORLD Trade Organisation (WTO) panel has ruled that Brazil is warranted in taking US$147 in countervailing measures annually against the US after American subsidies had priced other producers out of the market US assistant Trade Representative Carol Guthrie said she was "pleased" that arbitrators had allowed Brazil less than the $4 billion in annual countermeasures that Brazil had demanded.

"At this time, we do not know when or if Brazil will move to obtain final authorisation to suspend concessions or when or if Brazil would act on any such authorisation," she added.

Brazil WTO ambassador Roberto Azevedo said the failure of the panel in conceding to seek the right to suspend concessions against US intellectual property and services shows disregard of WTO rules is "a cause for concern" and likely to complicate negotiations at the Doha Round.

"It is regrettable that the United States has not yet complied with the determination of the multilateral trading system after the US subsidies have been condemned several times," said Mr Azevedo.

(Source: www.schednet.com)