Brazil to Join Canada in WTO Complaint Against U.S.

The complaint is that U.S. agriculture subsidies unfairly distort trade.

Published on: Jul 11, 2007

A Brazilian Foreign Ministry spokesman told Dow Jones Newswires Tuesday that the country will join in Canada's complaint with the World Trade Organization about U.S. trade-distorting agricultural subsidies.

"The Foreign Ministry will release a statement tomorrow, but I can confirm that Brazil will ask for more information from the U.S. on these subsidies as a co-author with Canada," the spokesman says.

Canada recently formally asked the WTO to establish a dispute settlement panel, charging that the U.S. had breached WTO commitments by surpassing a $19.1 billion WTO spending limit in six out of the past eight years. Canada also cited the U.S. for trade-distorting agricultural subsidies of soybeans, corn, wheat and sugar among other products via an export-credit program.

Earlier this year, Brazil announced that it was interested in joining a possible Canadian complaint against the U.S. that might target unfair corn subsidies. "This is not just about corn," Clodoaldo Hugueney, Brazilian ambassador to the WTO, said in January. "Brazil is the world's largest ethanol exporter, so this is an important issue for us."