(Sneha Shankar – IB Times)
The U.S. and Brazil have settled a long-standing trade dispute regarding subsidies that Washington provided to American cotton growers, Associated Press, or AP, reported, citing a source. The dispute has colored relationships between the two countries since 2002.
The official said, according to AP, that though the deal has not been officially announced by the two countries, the new agreement, which is to be signed Wednesday, is expected to allow Washington to fully implement the farm bill, which was approved by Congress in February. The new agreement also includes a new insurance program for cotton growers, which was put in place to adhere to new rules of the World Trade Organization, or WTO. Brazil will also not challenge the support promised to American cotton farmers by the farm bill, AP reported. Read more here.