The US government's cotton export subsidy has adverse effects on cotton growers in Brazil. The WTO authorized Brazil to impose a US $830 million tariff on us products.

The Brazil government will impose tariffs on us products if this North American country fails to comply with the WTO (WTO) ruling that the United States end the cotton subsidy.

This Latin American country is the world's fifth largest cotton producer and the world's third largest cotton exporter, second only to the United States, thanks to the US cotton export subsidy policy, Brazil. Cotton export Affected.

Roberto Carvalho Azevedo, the representative of the Brazil WTO, said that a group of ministries has discussed how to impose economic sanctions on the failure of the us to comply with the WTO ruling. WTO has approved Brazil's economic sanctions against the United States.

The WTO ruling said that the US government's cotton export subsidies had adverse effects on cotton growers in Brazil. The WTO authorized Brazil to impose a US $830 million tariff on us products.

However, the two countries reached an understanding on this issue in 2010. The United States says that the subsidy system will be amended according to the new US agricultural law, and the new agricultural law will be implemented this year. Brazil agreed to delay the tax on us products until the new law came into effect.

At the same time, the US Congress has passed the new agricultural law, and the new law will be implemented in September 30th this year. However, the new law supports the continuation of subsidies for cotton exports.