Cars, wheat, ketchup subject to higher duties in Brazil

Brasilia: Brazil published on Monday a list of US goods subject to import tariffs as part of a threatened retaliation in a long-standing dispute over US cotton subsidies.

The tariffs will go into effect in 30 days, unless the governments can reach a last-minute accord.

The World Trade Organization gave Brazil the formal go-ahead to impose sanctions on US imports last November after the body ruled the US government spent too much on subsidies for cotton farmers and on an export credit guarantee programme.

Proposal

US commerce secretary Gary Locke was yesterday expected to reach Brazil to make a proposal toward resolving the dispute, one of the few in which the WTO has allowed cross-retaliation, in which the wronged party can retaliate against a sector not involved in the dispute.

Monday's list of around 100 items includes a 50 per cent tariff on cars with small engines, a 22 per cent tariff on bar code scanners, and a 36 per cent levy on methanol. Cotton and cotton products would be charged a 100 per cent import tariff, the highest on the list.