Brazil's Case Against the U.S. Delayed Again

By Jim.Robinson|August 10, 2009

The Office of the U.S. Trade Representative (USTR) was notified that the Arbitration Panel’s findings in the Brazil case would not be released until August 31 of this year.

The World Trade Organization (WTO) previously had announced that findings, originally expected in mid-May, would be announced Aug. 14. This is the third announced delay by the WTO in the release of the findings.

Brazil has requested damages of $1.3 billion from the operation of the GSM program, $1 billion associated with the upland cotton program and $350 million from the operation of Step 2. The United States has countered that the GSM program had undergone substantial change and operates at no government cost; the Step 2 program was ended on July 31, ’06; and by using the Brazil economic model, no more than $30 million in serious prejudice damage could be claimed by Brazil.

The US Chamber of Commerce delivered a letter to the chairmen and ranking members of the Senate Finance and Senate Agriculture Committees regarding the Brazilian dispute of the US GSM and upland cotton programs. The letter contained substantial inaccuracies and flawed presumptions for a US response to any arbitration finding.

The NCC responded with a letter to the Chamber and will meet with Chamber officials during the week of Aug. 10 to discuss case aspects.