House Votes to Bar Payments to Brazil relating to WTO Cotton Case

During debate of the House Agriculture Appropriations FY2012 bill this week, Representatives Rosa DeLauro (D-CT) and Ron Kind (D-WI) offered amendments to bar the transfer of U.S. funds for technical assistance and capacity building to Brazil in connection to the WTO cotton case. The DeLauro amendment was defeated, but the Kind amendment was approved. Last year, the United States and Brazil reached a temporary agreement to avoid Brazilian trade retaliation of almost $1 billion against U.S. goods and intellectual property rights. The transfer of funds was one of the agreement's five pillars and its elimination would trigger sanctions by Brazil. The Brazil Trade Action Coalition (BRAZTAC), led by the U.S. Chamber-based Brazil-U.S. Business Council and composed of agribusiness, manufacturing, and services companies and trade associations, sought to defeat both amendments and is now assessing how to ensure that the temporary agreement survives. The U.S. Chamber sent a letter to Congress stressing its opposition to any amendment that would result in the dismantling of the 2010 U.S.-Brazil temporary agreement.



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