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Cotton War! Brazil slaps 100 punitive tariffs on U.S. goods.

Cotton War! Obama to Lula, no more subsidies, Mr.President!

Cotton War! Obama to Lula, no more subsidies, Mr.President!

The Obama administration is trying to defuse a major crisis with Brazil after the Latin American country started with a widely anticipated retaliatory tariff  against the importation of one hundred U.S. products, including intellectual property.

Brazil decided on the retaliatory tariffs after waiting for the United States to sort out subsidies offered cotton growers under its widely criticized cotton subsidies program. Brazil protested the subsidies in 2002, then again in 2005, 2008 and 2009 and won rulings from the World Trade Organization that called the subsidies discriminatory.

A 2005 WTO decision authorized Brazil to retaliate against U.S. goods and services but Brazil opted instead to allow the U.S. time to reform its cotton program.

Finally, Brazil said “enough is enough” and the cotton war is about to start.