The Brazilian Government expresses its satisfaction with the contents of the final report from the implementation panel established to assess whether the United States has complied with WTO decisions in the dispute regarding cotton subsidies. The final report, received today, October 15, confirms Brazil’s view that the measures introduced by the US in order to comply with the decisions of the original panel were insufficient.

The implementation panel was established on 28 September 2006, at Brazil’s request. Brazil has maintained throughout that the US did not fully comply with the decisions of the Dispute Settlement Body (DSB) in the aforementioned dispute. The understanding of Brazil is that the measures adopted by the US – the elimination of the 'Step 2' programme, and administrative changes to export credit guarantee programmes (including the suspension of some of them) – did not constitute full compliance with WTO decisions. In addition to the insufficient nature of the changes to the export credit guarantee programmes, important domestic support programmes that were condemned by the original WTO panel – such as Marketing Loans and Counter-Cyclical Payments – remain in place, unaltered.

The text of the final report from the implementation panel is confidential and can only be released after it has been translated into all the official languages of the WTO. After its release, if there is no appeal to the WTO Appellate Body, the document will be adopted by the DSB within a period of 60 days.

Brazil reiterates its conviction that the full implementation of the DSB recommendations is a fundamental requirement in ensuring the credibility of the multilateral trading system.

Source: Ministry of External Relations