Brazil's request to scrutinize the US regarding the withdrawal of all the subsidies that were ruled illegal was rejected by WTO earlier this month.
However, WTO recently decided to start investigations and if there is proof that the US was still providing any of the prohibited concessions, Brazil would be eligible to demand disciplinary permit against the American products.
Brazil claims that the US has maintained its place as the world's second-largest cotton grower because Washington paid almost US $12.5 billion in subsidies to domestic farmers during August 1999-July 2003 period.
Besides, the US is being accused of not taking any measures recommended by WTO despite the ban of federal cotton subsidy known as Step-2.