Brazilian authorities have agreed to postpone the implementation of retaliatory sanctions against the U.S. pending interim steps the U.S. will take in response to World Trade Organization rulings on its cotton subsidy programs.

 

Brazil has agreed to delay increased import tariffs on a number of U.S. goods until April 22, given the U.S. honors its commitments which have been set forth by the Brazilian government.  Those stipulations include a fund of $147.3 million per year to provide assistance to the cotton crops, modifications of the GSM-102 export credit guarantee, and a proposed rule pertaining to the extinction of various diseases within Brazil which is currently preventing fresh beef imports to the U.S.

 

If these objectives are achieved by April 21, Brazil will again postpone retaliation, likely for another 60 days, while the two sides work to agree on a process for reaching a permanent solution to the cotton dispute.