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ARTICLE · 28 NOVEMBER 2007

International Client Alert, November 2007

Powell Goldstein LLP
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On October 15, 2007, a WTO Panel issued its final determination that the United States still was not in compliance with its obligations concerning subsidies to the U.S. cotton industry.

United StatesInternational Law

WTO Panel Says United States Cotton Subsidies Still Violate The WTO Agreement; U.S. Service Providers May Bear The Brunt Of Sanctions

On October 15, 2007, a WTO Panel issued its final determination that the United States still was not in compliance with its obligations concerning subsidies to the U.S. cotton industry. This decision opens the way for Brazil to impose sanctions on U.S. exports to Brazil until the United States is in compliance, although such sanctions still need to be approved. While the most recent decision has not yet been made public, both the United States and Brazil acknowledge the outcome. Brazil has not indicated whether it will seek to impose sanctions immediately or await further developments in the United States.

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