The World Trade Organization ruled in August that Brazil may impose these duties because the United States has failed to comply with an earlier WTO ruling against subsidies provided to U.S. cotton growers. Brazil is now claiming the right to retaliate against up to $900 million in U.S. goods and services.
Brazilian imports of the U.S. goods on the CAMEX list are valued at $2.7 billion, representing 10.6 percent of all goods imported from the United States in 2008, the note said.
Industry and commercial associations and other entities have until Nov. 30 to provide input on the listed products. After considering domestic industry and consumer interests, CAMEX will develop a final list of about $450 million worth of U.S. goods and present it to the WTO for approval. These products will then be subject to import duties of up to 100 percent.
'CAMEX has indicated that it may also consider retaliation against U.S. intellectual property rights and services totaling $450 million, a move that is nearly unprecedented,' ST&R said. 'Given the potential implications of this so-called cross-retaliation and the conflicting opinions as to whether or not to take such a step, the Brazilian government has not yet decided whether to do so. However, Carlos Cozenendey, director of the Itamaraty Economic Department, has said that unless the U.S. takes measures regarding its cotton subsidies there will be retaliation.'
The list is not yet final and is open to amendment, the law firm added.
