TWN Info Service
on WTO and Trade Issues (Mar10/08)
Geneva, 9 Mar (Kanaga Raja) -- The Brazilian government on 8 March published its final list of goods originating from the United States that will be subject to increased import duties, in line with the authorization it received from the Dispute Settlement Body of the World Trade Organization to suspend the application to the United States of concessions and other obligations in the upland cotton dispute.
The increased import
duties (retaliation measures), notified to the WTO, will take effect
30 days from the
On 31 August 2009,
in two separate reports concerning arbitration proceedings in the US-Brazil
upland cotton dispute, the Arbitrator ruled that
In the first report, the Arbitrator determined that the annual level of appropriate countermeasures in relation to GSM 102 payments - prohibited subsidies - amounts to $147.4 million based on Fiscal Year 2006 data. In its second report, the Arbitrator determined that the annual level of countermeasures in relation to the marketing loan and counter-cyclical payments - actionable subsidies - amounts to $147.3 million. (See SUNS #6764 dated 1 September 2009 for full details on the Arbitrator's ruling.)
On 19 November 2009,
the DSB granted
Subsequently, on 21
On the basis of the
same period, the threshold above which
In its announcement
on 8 March,
The CAMEX Resolution
will take effect in 30 days, said
According to the Brazilian press release, the list of goods corresponds to an amount of retaliation of $591 million.
The remaining annual
amount of retaliation to which
The Brazilian press
release said that this results from the
countermeasures may remain in effect as long as the
also stems from the fact that "circumstances are serious enough"
to justify resort to measures in other areas, so as to induce the
While expressing regret over having to take these measures, Brazil however pointed out that after almost eight years of litigation and over four years of continuing non-compliance with the rulings of the Dispute Settlement Body on the part of the US, and in the absence of the offering of concrete and realistic options that could allow for the negotiation of a satisfactory solution to the dispute, it remains for Brazil to exercise its right, as authorized by the WTO.
In a brief statement
"[The] USTR is
working to reach a solution to the issues in this dispute without
According to media
reports, both US Commerce Secretary Gary Locke and Michael Froman, a
deputy national security advisor on economic issues, are expected to
The list of goods that will be subject to suspension of Brazil's concessions and other obligations in the WTO include food products such as frozen herring, fresh or dried hazelnuts and walnuts, fruits such as dried grapes, fresh pears, cherries and plums, mixtures of juices, medicaments, and household items such as beauty creams, shampoos, soap products and tooth brushes.
Also included in the list are items such as cotton and woven fabrics of cotton, carpets, textile fabrics and items of clothing such as trousers (both men's and women's as well as boy's and girl's), articles of jewellery, wrist-watches and plastic furniture.
The list further includes household electric and electronic equipment such as freezers, mowers, cookers and roasters, portable telephones, cameras (digital and television), video camera recorders, and sound amplifier sets and loudspeakers, as well as motor cars and other motor vehicles, motorcycles and motorboats.
All of the products will see increased import duties from the current applied levels and will be applied to US goods only.
Cotton and woven fabrics of cotton will see the greatest increase in tariffs, from the current 6-26% to 100%.
Food products such as frozen herring, fresh or dried walnuts, dried grapes, fresh pears, fresh cherries and fresh plums will see an increase in tariffs from 10% to 30%.
Duties on household beauty products such as lip make-up preparations, beauty creams, tonic lotions, shampoos, pre-shave and after-shave preparations, amongst others, will increase from 18% to 36%.
Among other examples, tariffs on household goods such as freezers, cookers, and digital and television cameras would double, from 20% to 40%. Motor cars and other motor vehicles will see an increase in tariffs from 35% to 50%. +