US-Brazil cotton deal may allow beef and pork imports

A plan to settle a dispute with Brazil over US cotton subsidies would allow some Brazilian beef and pork to enter the country.

Under terms of the deal, the US would provide US$147 million a year in assistance to Brazil's cotton growers while also moving to lift some barriers on beef and pork related to foot-and-mouth disease (FMD) and other animal health concerns.

The agreement keeps Brazil from imposing retaliatory tariffs on US exports over American cotton subsidies. Brazil won a case at the World Trade Organization alleging that the subsidies unfairly drove down global cotton prices.

Chris Garza, who follows trade policy for the American Farm Bureau Federation, said the deal was ''the first good step in trying to resolve this case.'' He said it was too early, however, for the Farm Bureau to take a position on the specific measures the administration is proposing to take.

Brazil was preparing to impose higher tariffs on a range of US products, including wheat and cotton, among others.