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Govt unveils cross-retaliation list in U.S. cotton case
Mar '10
Brazil's government proposed a list of 21 additional items subject to possible trade retaliation in a dispute with the U.S., including suspension of intellectual property rights and patents for films and medicines.

The latest proposals follow last week's publication of 102 items that will be subject to tariffs valued at $591 million. The tariffs will take effect April 7, unless a negotiated settlement can be reached in the matter.

The World Trade Organization authorized Brazil in June to impose retaliatory tariffs related to a dispute over alleged U.S. cotton subsidies. Brazil said the subsidies caused $3 billion in damages, and the WTO ruled that Latin America's largest economy could apply sanctions valued at $829 million against U.S. products.

The latest proposal focuses on intellectual property rights and should add $238 million to the sanctions against U.S. products.

Brazil could break patents on medications, veterinary medications and agricultural chemicals. In addition, music and films could be publicly reproduced without compensation to rights holders.

Despite the latest additions in the contentious dispute, many expect Brazil and the U.S. to reach a negotiated settlement.

Brazil's national security adviser, Marco Aurelio Garcia, said Friday that he believes the two countries will be able to reach a deal. Talks between the two governments started last week.

"One reason I believe in a negotiated solution is that we have such good arguments on our side. We are simply applying a WTO ruling," Garcia said. The official also noted that relations between Brazil and the U.S. are generally "very good."

Brazil-U.S. Business Council

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