TWN Info Service on Intellectual Property Issues (June08/07)
17 June 2008
Third World Network

Below are articles from the Associated Press & Financial Times on US losing its WTO appeal on cotton subsidies and the possibility of Brazil taking retaliatory action against US services & intellectual property.

With Regards
Sangeeta Shashikant
Third World Network
email: ssangeeta@myjaring.net
Tel: 00 41 (0) 22 908 3550.

U.S. Loses Latest Appeal on Cotton Subsidies

By THE ASSOCIATED PRESS
Published: June 3, 2008

GENEVA — The United States lost its final appeal Monday in a billion- dollar trade dispute with Brazil over subsidies to American cotton growers.

A World Trade Organization appeals panel reversed parts of an earlier ruling made last December, but found that on the whole the American payments breach global commerce agreements.

Brazil can now ask the W.T.O. to authorize retaliatory trade sanctions on the United States that could run into the billions of dollars until Washington scraps the payments.

American lawmakers voted last month to overturn a veto by President Bush and force through a farm bill worth $290 billion that will largely maintain the cotton payments for the next five years.

United States trade officials said they were disappointed with the ruling and rejected Brazil’s complaint that the payments distort the global cotton market.

“We believe that the changes made by the United States brought the challenged payments and guarantees into full compliance with the W.T.O.’s recommendations and rulings in the original cotton dispute,” Sean Spicer, spokesman for the United States trade representative, said.
“There is no basis to say that U.S. payments are today having any impact on cotton prices,” he added.

Brazil and several West African cotton-producing countries have long claimed that their farmers suffer because of Washington’s payments to cotton growers, which amount to some $3 billion a year.

Any trade sanctions imposed by Brazil will likely target American trademarks, patents and commercial services, the South American country has warned.

US rapped over cotton subsidies

Financial Times
By Frances Williams

Published: June 3 2008 03:00 | Last updated: June 3 2008 03:00

The World Trade Organisation yesterday upheld a complaint by Brazil that Washington has not done enough to remove illegal subsidies to its cotton farmers. The ruling opens the way for Brazil to request WTO authorisation for more than $1bn (€642,000, £509,400) in retaliatory trade sanctions, targeted on US services and intellectual property.

Frances Williams, Geneva