Source:  Tom Johnston, MEATINGPLACE.COM, 4/7/10

The United States and Brazil have agreed on a plan to settle a dispute on U.S. cotton subsidies that includes the possible re-entry of Brazilian beef and pork products into the United States.

Washington agreed to pay $147 million per year to assist Brazil's cotton growers while also initiating the removal of barriers on Brazilian beef and pork.

Specifically, the United States agreed to publish a proposed rule by April 16, 2010, to recognize the state of Santa Catarina as free of foot-and-mouth disease, rinderpest, classical swine fever, African swine fever, and swine vesicular disease, based on World Organization for Animal Health guidelines.

Washington also agreed to complete a risk evaluation and determine whether fresh beef can be imported from Brazil while preventing foot-and-mouth disease in the United States.

The cotton agreement prevents Brazil from imposing retaliatory tariffs on U.S. exports. In August 2009, the World Trade Organization sided with Brazil's contention that U.S. cotton subsidies unfairly depressed global cotton prices and allowed Brazil to impose countermeasures.

Last month, Brazil announced a final list of products that would face higher tariffs beginning today. Goods on the list include autos, pharmaceuticals, medical equipment, electronics, textiles, wheat, fruit and nuts, and cotton.

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