. /.   WORLD TRADE  
ORGANIZATION  WT/DS357/4 
23 January 2007 
 
 (07-0318) 
 Original:   English 
  
 
UNITED STATES – SUBSIDIES AND  OTHER DOMESTIC SUPPORT 
FOR CORN AND OTHER AGRICULTURAL PRODUCTS 
 
Request to Join Consultations
 
 
Communication from Brazil 
 
 
 The following communication, dated 19 January  2007, from the delegation of Brazil to the 
delegation of the United States, the delegation of  Canada and to the Chairman of the Dispute 
Settlement Body, is circulated in acco rdance with Article 4.11 of the DSU. 
 
_______________ 
 
  With reference to the request by Canada fo r consultations with the United States concerning 
United States – Subsidies and Other Domestic Suppor t for Corn and Other Agricultural Products 
(WT/DS357/1, circulated on 11 January 2007), I hereby wish to convey the request of the 
Government of Brazil, pursuant to Article 4.11 of the Understanding on Rules and Procedures 
governing the Settlement of Disputes ("DSU"), to be joined in these consultations. 
 
 Brazil has a substantial trade interest in th e issues under consultation, as explained below. 
  First, with regard to the so-called "first part " of Canada's request, Brazil recalls that it is the 
third major world producer and exporter of corn. In 2005/6, Brazilian production was of 
approximately 42 million metric  tons or about 6% of total world production for the period.
1 Brazilian 
exports, in turn, amounted to 4 million metric tons in the same period.2 The United States itself 
acknowledges the role of Brazil as a ma jor participant in the corn market.3 Further, as also recognized 
by the United States – "the wo rld's dominant corn exporter"4 –, "corn prices are largely determined by 
supply-and-demand relationships in the US market, and the rest of the world must adjust to prevailing 
US prices".5 Under these circumstances, Brazil's substantia l interest in the present consultations is 
more than well-founded. 
                                                      
1 The two major producers – the United States and China – responded for approximately 42% and 19% 
of total world production, respectively. 
2 See "World Agricultural Supply and Demand Estimates" (issued on January 12, 2007), pages 442-22 
and 442-23, available at www.usda .gov/oce/commodity/wasde/latest.pdf . The same level of exports was 
recorded in 2006. See http://aliceweb.desenvolvimento.gov.br/default.asp. 
3 "... Brazil is expected to remain a significant net exporter of corn because of attractive world prices 
and niche marketing." See "Baseline Projections for World F eed Grains Trade", available at 
www.ers.usda.gov/Briefing/Corn/2005baseline.htm . 
4 See www.ers.usda.gov/B riefing/Corn/trade.htm . 
5 See www.ers.usda.gov/B riefing/Corn/trade.htm . In this respect, the United  States singles out Brazil 
and some other countries in stating that, "Several countries – including Brazil, Ukraine, Romania, and South 
Africa – have had significant corn exports when crops  were large or international prices attractive." Idem . WT/DS357/4 
Page 2  
 
   Second, concerning the "second part" of Canada 's request, Brazil has a clear and undeniable 
substantial interest in these c onsultations. The export credit guarant ee programs challenged by Canada 
have been subject of a complaint by Brazil in the context of the dispute United States – Subsidies on 
Upland Cotton  (WT/DS267), currently being examined by a DSU Article 21.5 compliance panel.
6 As 
the United States is fully aware, in the cotton dispute  the original panel found, and the Appellate Body 
confirmed, that Brazil's case included export credit guarantees to all eligible agricultural 
commodities.7 
  Finally, with reference to the "third part" of Canada's request for consultations, Brazil's role as 
one of the major producer and exporter of various agricultural products and our strong engagement in 
multilateral debates about the rules of the Agreement on Agriculture  prove Brazil's substantial interest 
and call for the US agreement on Brazil being joined in  the consultations at issue.  In addition, Brazil 
recalls that all the measures cited by Cana da‘s request were also subject of the cotton dispute . 
  Brazil considers that the reasons hereby provide d, taken individually or collectively, make it 
clear that Brazil has satisfied the requirements  under DSU Article 4.11. Therefore, Brazil would 
appreciate being informed of the date and venue of consultations. 
  A copy of this letter is being served on Canada and the Chairman of the Dispute Settlement Body ("DSB").  
__________ 
 
 
                                                     
 
6 See, e.g.  Brazil's request for consultations (WT/DS267/1 ), Brazil's request for the establishment of a 
panel (WT/DS267/7), and Brazil's request of the establishment a panel under DSU Article 21.5 (WT/DS267/30). 
Brazil notes that Canada listed these two documents in the statement of available evidence  attached to 
WT/DS357/1. 
7 Appellate Body Report, US – Upland Cotton  (WT/DS267/AB/R), paras. 291 and 294. Panel Report, 
US – Upland Cotton (WT/DS267/R), paras. 7.65 and 7.69