USTR Seeks Comments on WTO Dispute Over U.S. Compliance with WTO Ruling on Subsidies to Upland Cotton
The Office of the U.S. Trade Representative (USTR) has issued a notice announcing that Brazil has requested the establishment of a World Trade Organization (WTO) dispute settlement panel (DSP) regarding the U.S.' compliance with earlier WTO recommendations and rulings in a dispute settlement proceeding on the U.S.' subsidies provided to U.S. producers, users and/or exporters of upland cotton.
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The USTR states that it invites written comments from the public concerning the issues raised in this dispute. To be assured of timely consideration, comments should be submitted on or before November 1, 2006.
Brazil Alleges U.S. Has Not Fully Complied with Earlier WTO Rulings, Etc.
According to the USTR, in its request for a DSP, Brazil alleges that the U.S. has not fully complied with the recommendations and rulings of the Dispute Settlement Body from the original dispute. Among other things, Brazil alleges that the U.S. has failed to take appropriate steps to remove the adverse effects or withdraw the subsidies found to cause adverse effects.
In addition, Brazil presents claims relating to the prohibited export credit guarantee program (ECG) related export subsidies. Brazil alleges that the U.S. has taken no action with respect to guarantees provided prior to July 1, 2005, the deadline for implementation, under the three programs at issue in the original dispute-GSM-102, GSM-103, and the Supplier Credit Guarantee Program (SCGP). Brazil also alleges that, with respect to GSM-102, the SCGP, and guarantees provided thereunder after the date for implementation, the U.S. measures taken to comply are inconsistent with certain provisions of the Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures (SCM Agreement).
If Established, DSP Would Issue Report Within 90 Days of Referral
The USTR states that if a dispute settlement panel is established, such panel, which would hold its meetings in Geneva, Switzerland would be expected to issue a report on its findings and recommendations within 90 days after referral of the matter to it.
- to be assured of timely consideration, written comments should be submitted on or before November 1, 2006.
(See ITT's Online Archives or 07/11/05 news, 05071120, for BP summary of announcement of changes to the U.S. ECG programs and proposal of other changes to comply with WTO findings, including information on the previous WTO dispute and finding regarding U.S. subsidies to upland cotton.)
USTR Contact - Behnaz Kibria (202) 395-9589
USTR Notice (D/N WTO/DS-267, FR Pub 10/10/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-16682.pdf
WTO U.S. Upland Cotton Dispute Settlement History (DS267, updated as of 06/02/06) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds267_e.htm