An agreement has been reached between US and Brazilian authorities that has staved off the threat of tariffs on certain exports to the South American country, including cherries, pears and plums, that had been set to begin on 21 June.
The deal was struck on 18 June, The Packer reported, eliminating the threat of World Trade Organisation (WTO)-backed trade penalties worth around US$560m.
Tariffs had been threatened in retaliation to US cotton subsidies that Brazil said had broken international trade rules, with three WTO decisions in 2005, 2008 and 2009 finding in Brazil's favour, resulting in awards of over US$800m being issued.
The Office of the US Trade Representative revealed that the deal had two main elements, including an agreement on a solution to the cotton subsidies and quarterly meeting to discuss the next Farm Bill's policies on those subsidies.
