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Published April 23, 2010, 04:18 PM

US, Brazil strike cotton fund accord

BRASILIA, Brazil — The U.S. and Brazil have signed a deal that will delay for two months any Brazilian sanctions on American goods because of a dispute over cotton subsidies.

BRASILIA, Brazil — The U.S. and Brazil have signed a deal that will delay for two months any Brazilian sanctions on American goods because of a dispute over cotton subsidies.

The U.S. Embassy in Brazil says Thursday the agreement establishes a fund for technical assistance and capacity building for Brazil’s cotton sector.

The U.S. will pay $147 million per year to Brazil for the fund, which was made public April 6.

The Brazilian government brought the cotton case to the World Trade Organization in 2002.

The WTO says Brazil can take punitive action because the U.S. has failed to get rid of illegal subsidies provided to cotton farmers.

The WTO authorized Brazil to impose a total of $829 million in annual sanctions.

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