No more US ag protectionism - Mercosur asks
complaint at the World Trade Organization against increases in
American agricultural subsidies.
Brazilian authorities have confirmed that they will file a complaint at the World Trade Organization against increases in American agricultural subsidies. The Executive Secretary of Brazil's Foreign Trade Chamber Roberto Giannetti da Fonseca, said that the complaint will be presented at the next round of WTO multilateral negotiations. Recently, Mr. Giannetti criticised a US proposal to raise subsidies on sugar, wheat, cotton and soy, emphasising that subsidies are a protectionist measure that caused the price of soy to fall. In July, Brazilian foreign sales of soybeans dropped 29.9 per cent from June this year, and 11.1 per cent from July last year. Meanwhile, the Brazilian foreign trade secretary of the Development Ministry, Lytha Spindola, added that American protectionism affects 15 major Brazilian export products. Both officials said the South American Common Market (Mercosur), which includes Brazil, Uruguay, Argentina and Paraguay, demands the removal of American agricultural protectionism barrier as a prior step to the establishment of the Free Trade Area of the Americas (FTAA).