US and Brazil Try To Cotton Over Their Differences

Posted by Admin

The United States and Brazil have been embroiled in a trade war over the cotton industry for quite a while. The Obama adminsitration, in an attempt to smooth over the conflict, is offering an olive branch to Brazil and it’s cotton farmers.

The Obama administration offered $147.3 million in assistance to Brazilian cotton producers and suspended an export-credit program for American farmers, in a bid to end a trade dispute with the Latin American nation.The government will also seek to ease sanitary barriers to Brazilian imports of pork and beef, U.S. Trade Representative Ron Kirk said in a statement today on the preliminary deal. The U.S., which lost a World Trade Organization ruling in August that said its cotton subsidies violate global trade rules, will work with Brazil to reach a comprehensive agreement by June.

If you had any stock in American cotton companies, look for it to decrease slightly. Brazilian stock should rise steadily over the next couple of days in light of this news.