U.S., Brazil to open negotiations in effort to avoid trade retaliation

The U.S. and Brazil will open a series of talks next week in an effort to avoid trade retaliation and possible counter-retaliation in a case involving alleged U.S. cotton subsidies.

The decision to open negotiations came following meetings in Brasilia Wednesday between U.S. Secretary of State Hillary Clinton and top Brazilian officials.

“I believe this story will have a happy ending,” said Clinton at a joint news conference with Brazilian Foreign Minister Celso Amorim.

Last year, Brazil won the right to impose up to $830 million in retaliatory measures against U.S. products. The award came from the World Trade Organization in a case involving Brazilian complaints of alleged U.S. subsidies to cotton growers.

Amorim said Brazil will publish a list of products eligible for retaliation next week. Talks will begin based on the list.

Amorim said he believed the two countries will come to an agreement involving U.S. compensation for Brazil, thus avoiding Brazilian trade or patent retaliation and possible U.S. counter-retaliation.