[A2k] Associated Press and Financial Times on Brazil/US cotton case and its ramifications on trademarks and patents

[Thiru Balasubramaniam]

U.S. Loses Latest Appeal on Cotton Subsidies


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The United States lost its final appeal Monday in a billion-dollar
trade dispute with Brazil over subsidies to American cotton growers.

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Brazil and several West African cotton-producing countries have long
claimed that their farmers suffer because of Washington=92s payments to
cotton growers, which amount to some $3 billion a year.

Any trade sanctions imposed by Brazil will likely target American.
trademarks, patents and commercial services, the South American
country has warned.


By THE ASSOCIATED PRESS
Published: June 3, 2008

GENEVA =97 The United States lost its final appeal Monday in a billion-
dollar trade dispute with Brazil over subsidies to American cotton
growers.

A World Trade Organization appeals panel reversed parts of an earlier
ruling made last December, but found that on the whole the American
payments breach global commerce agreements.

Brazil can now ask the W.T.O. to authorize retaliatory trade sanctions
on the United States that could run into the billions of dollars until
Washington scraps the payments.

American lawmakers voted last month to overturn a veto by President
Bush and force through a farm bill worth $290 billion that will
largely maintain the cotton payments for the next five years.

United States trade officials said they were disappointed with the
ruling and rejected Brazil=92s complaint that the payments distort the
global cotton market.

=93We believe that the changes made by the United States brought the
challenged payments and guarantees into full compliance with the
W.T.O.=92s recommendations and rulings in the original cotton dispute,=94
Sean Spicer, spokesman for the United States trade representative, said.

=94There is no basis to say that U.S. payments are today having any
impact on cotton prices,=94 he added.

Brazil and several West African cotton-producing countries have long
claimed that their farmers suffer because of Washington=92s payments to
cotton growers, which amount to some $3 billion a year.

Any trade sanctions imposed by Brazil will likely target American.
trademarks, patents and commercial services, the South American
country has warned.

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Financial Times

US rapped over cotton subsidies

By Frances Williams

Published: June 3 2008 03:00 | Last updated: June 3 2008 03:00

The World Trade Organisation yesterday upheld a complaint by Brazil
that Washington has not done enough to remove illegal subsidies to its
cotton farmers. The ruling opens the way for Brazil to request WTO
authorisation for more than $1bn (=80642,000, =A3509,400) in retaliatory
trade sanctions, targeted on US services and intellectual property.

Frances Williams, Geneva


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Thiru Balasubramaniam
Geneva Representative
Knowledge Ecology International (KEI)
thiru@keionline.org


Tel: +41 22 791 6727
Mobile: +41 76 508 0997