Brazil sets retaliation in U.S. cotton case

Brazil's government said Monday it would levy a total of $591 million in retaliatory tariffs on U.S. goods under a ruling against U.S. cotton subsidies granted by a World Trade Organization ruling last year.

The government published a list of 102 imports from the U.S. subject to increases in Brazil's so-called "II" import tax. The increased tariffs will remain in effect for one year, pending alterations in U.S subsidy practices.

The list included mostly nonessential consumer products such as cosmetics and electronic devices.

Brazil said that in addition to the increased tariffs, it would impose $238 million in other retaliations against the U.S., hoping to punish industries such as those involving intellectual-property rights and U.S. services.

Brazilian officials Monday said they would have preferred not to impose the import retaliations, but had not received satisfactory responses from U.S. authorities to their proposals for alternatives.

Brazil was awarded the right to impose up to $829 million in retaliation as part of a WTO trade ruling on a case filed in 2002 against an alleged $12 billion in illegal subsidies offered by the U.S. to its cotton industry between 1999 and 2002.