Brazil, US Signed Memorandum On Cotton Dispute23/04/2010 by Intellectual Property Watch 2 CommentsShare this Story:Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Google+ (Opens in new window)Click to share on Facebook (Opens in new window)Click to email this to a friend (Opens in new window)Click to print (Opens in new window)IP-Watch is a non-profit independent news service, and depends on subscriptions. To access all of our content, please subscribe now. You may also offer additional support with your subscription, or donate.On 20 April, Brazil and the United States signed a memorandum of understanding (MOU) establishing a fund that “will transfer resources to benefit the cotton sector in Brazil,” according to a Brazilian government press release.The MOU is “part of the path forward for the cotton dispute that the United States and Brazil reached earlier this month,” said an Office of the US Trade Representative (USTR) press release ( IPW, IP Burble, 7 April 2010).The US made two other commitments: they “agreed to make some near term modifications to the operation of the GSM-102 Export Credit Guarantee Program [which is an export incentive programme for agricultural products], and to engage with the government of Brazil in technical discussions regarding further operation or the program,” as well as the publication of a proposed rule to recognise the state of Santa Catarina as free of several animal diseases, according to USTR. This is “an essential step for the official recognition that Brazilian meat exports are disease-free,” said the Brazilian release.Others were a claim on US marketing loan and countercyclical payments, and a claim to suspend IP rights obligations under the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the General Agreement on Trade in Services (GATS).Brazil was allowed to take trade countermeasures by a WTO dispute settlement ruling that found US cotton subsidies in non-compliance with international trade rules. The decision gave Brazil the authorisation to suspend its obligations on US goods including IP rights.However, Brazil suspended its countermeasures for the next 60 days during which the US and the Brazilian should continue negotiations.“Brazil believes that the agreement reached between the two governments constitutes positive progress and hopes that the next few steps in the negotiations lead to the full implementation of the WTO rulings,” the country said.Share this Story:Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Google+ (Opens in new window)Click to share on Facebook (Opens in new window)Click to email this to a friend (Opens in new window)Click to print (Opens in new window)Related"Brazil, US Signed Memorandum On Cotton Dispute" by Intellectual Property Watch is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.