“Brazil is likely to receive $400 million from the United States as part of an agreement to compensate the South American country” in the decade-old cotton subsidy dispute, says Agro-South. “The money would be sent to Brazilian farmers to compensated disadvantages generated by the US Farm Bill.” It says a Brazilan cotton grower group has said it would accept $400 million as a settlement.
“This report is incorrect,” said an Agriculture Department spokesman on Tuesday. “No agreement has been reached with Brazil at this time.”
As the winner of a WTO ruling, Brazil has authority to impose more than $800 million in retaliatory tariffs on U.S. products. It has preferred a resolution over retaliation. The nations have met for negotiations with no settlement being announced.