US objection on Brazil's first time request in “Cotton” case

06 Sep '06

2 min read

At its meeting on 1 September 2006, the DSB deferred Brazil's first-time request for a compliance panel to examine US implementation in the “Cotton” case (DS267) following an objection by the US.

DS267: United States – Subsidies on Upland Cotton

At its meeting on 1 September 2006, the DSB considered Brazil's first-time request (WT/DS267/30) for a compliance panel under DSU Article 21.5 in the “Cotton” case.

In making the request, Brazil recalled that the DSB had adopted its rulings on 21 March 2005 and the reasonable period of time for implementation had been fixed to expire on 1 July 2005 and on 21 September 2005 as regards, respectively, the prohibited and the actionable subsidies found to be inconsistent with WTO Agreements.

Brazil said that with respect to some DSB's recommendations and rulings, the US had not adopted any implementation measures at all, and that the measures it had adopted had fallen far short of compliance.

The US expressed regret over the decision by Brazil to request a compliance panel. The US said that it had fully implemented the DSB's recommendations and rulings by repealing the so-called “Step 2” programme which had been found by the DSB to be a prohibited subsidy and to have caused adverse effects during the period analysed by the Panel.

In addition, the US had also ceased providing guarantees for two export credit guarantee programmes examined by the Panel. The single export credit programme which remained in operation had been completely overhauled.

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