WORLD TRADE  
ORGANIZATION  WT/DS267/43 
12 March 2010 
 
 (10-1330) 
 Original:   English 
 
 
 
UNITED STATES – SUBSIDIES ON UPLAND COTTON 
 
Communication from Brazil  
 
 
 The following communication, dated 8 March 2010, from the delegation of Brazil to the 
Chairman of the Dispute Settlement Body, is circulated at the request of that delegation. 
 
_______________ 
 
  On 19 November 2009, the Dispute Settlement Body ("DSB") authorized Brazil to suspend 
the application to the United States of concessions or other obligations consistent with the Arbitrator's 
Decision contained in document WT/DS267/ARB/1. On the same date, the DSB also authorized 
Brazil to suspend the application to the United Stat es of concessions or other obligations consistent 
with the Arbitrator's Decision containe d in document WT/DS267/ARB/2 and Corr.1. 
  The authorizations were granted pursuant to Brazil's requests contained in documents 
WT/DS267/41 and WT/DS267/42. In both requests, Brazil undertook to notify the DSB of the 
countermeasures it intended to adopt pr ior to bringing them into force. 
  Application of the methodology established by the Arbitrator in paragraph 6.5(a) of the Decision contained in document WT/DS267/ARB/1, us ing data from the most recent period for which 
complete data are available (fiscal year 2008 a nd calendar year 2008), yields an annual level of 
countermeasures of US$ 682 million. Adding this valu e to the annual fixed level of countermeasures 
of US$ 147.3 million that arises from the Deci sion contained in document WT/DS267/ARB/2 and 
Corr.1, results in a total annual level of countermeasures of US$ 829.3 million.   On the basis of the same period, the threshol d described in paragraph 5.201 of the Decision 
contained in document WT/DS267/ARB/1, as well as in  paragraph 5.201 of the Decision contained in 
document WT/DS267/ARB/2 and Corr.1, updated to acc ount for the change in Brazil's total imports 
from the United States, is US$ 561 million.   Paragraph 6.5(b) of the Decision contained in document WT/DS267/ARB/1 reads as follows:  
"In the event that the total level of counter measures that Brazil would be entitled to in 
a given year [footnote] should increase to a level that would exceed the threshold described in paragraph 5.201,  updated to account for the change in Brazil's total 
imports from the United States, then, Brazil would also be entitled to seek to suspend 
certain obligations under the TRIPS Agreem ent and/or the GATS, as identified in 
footnote 468, with respect to any amount of  permissible countermeasures applied in 
excess of that figure." [Text of footnote]: "It is understood that this amount is to be 
calculated taking into account the entirety of  the level of countermeasures that Brazil 
is entitled to at that point in time, arising both from the application of the formula identified in paragraph 6.5(a) and from the Decision by the Arbitrator contained in 
WT/DS267/ARB/2." WT/DS267/43 
Page 2  
 
   But for the cross-references, the text of pa ragraph 6.5(b) of the Decision contained in 
document WT/DS267/ARB/2 and Corr.1 is identical.   In light of the above, starting from 7 April 2010 , Brazil will suspend the application to the 
United States of concessions or other obligations under the General Agreement on Tariffs and Trade 
1994 (GATT 1994) in the form of increased import du ties on certain products when they are imported 
from the United States. The products that will be s ubject to the increased duties, together with the 
total rate of ad valorem  duty that will be applied as a result of the increase, are listed in the Annex. 
This suspension corresponds, over one year, to a total value of approximately US$ 591 million. 
Should there be any changes to the above-menti oned countermeasures during the period of their 
application, Brazil will notify the DSB be fore the changes come into effect. 
  Since the total annual level of countermeasur es to which Brazil is currently entitled exceeds 
the threshold identified above, Brazil will also suspe nd the application to the United States of certain 
concessions or obligations under the Agreement on Trade-Related Aspects of Intellectual Property 
Rights ("TRIPS Agreement") and/or the General Agreement on Trade in Services  (GATS), up to an 
annual amount of approximately US$ 238 million. Brazil will notify to the DSB the specific 
concessions or obligations under TRIPS and/or GATS whose application to the United States will be 
suspended before such susp ension comes into force. 
  
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  WT/DS267/43 
 Page 3 
 
 
  ANNEX 
 
Code Description of Goods* Increased 
Tariff (applied to US goods 
only) 
0303.51.00 --Herrings ( Clupea harengus, Clupea pallasii )  30% 
0402.10.10 Of an arsenic, lead or copper conten t, taken separately, of less than 5 ppm  48% 
0404.10.00 -Whey and modified whey, whether or not concentrated or containing added 
sugar or other sweetening matter  48% 
0504.00.13 Of swine  28% 
0802.21.00 --In shell  26% 
0802.31.00 --In shell  30% 
0802.32.00 --Shelled  30% 
0806.20.00 -Dried  30% 
0808.20.10 Pears  30% 
0809.20.00 -Cherries  30% 
0809.40.00 -Plums and sloes  30% 
1001.90.90 Others  30% 
1502.00.11 Raw  26% 
1507.90.90 Others  30% 
1514.11.00 --Crude oil  30% 
1514.19.10 Refined  30% 
2005.20.00 -Potatoes  34% 
2009.90.00 -Mixtures of juices  34% 
2103.20.10 In immediate containers holding not more than 1 kg  38% 
2103.90.91 In immediate containers holding not more than 1 kg  38% 
2106.10.00 -Protein concentrates and textured protein substances  34% 
2106.90.30 Preparations often refe rred to as food supplements  36% 
2106.90.50 Sugar-free chewing gum  36% 
2106.90.90 Others  36% 
2202.90.00 -Others  40% 
2303.20.00 -Beet-pulp, bagasse and other waste of sugar manufacture  26% 
2905.11.00 --Methanol (methyl alcohol)  22% 
2929.10.21 Isomer mixture  28% 
3003.90.55 Paracetamol; bromopride  28% 
3004.20.19 Other  14% 
3004.20.79 Other  14% 
3004.39.39 Other  14% 
3004.40.90 Other  14% 
3004.90.49 Other  14% 
3005.10.90 Other 12% 
3006.10.90 Other 22% 
3303.00.20 Toilet waters  36% 
WT/DS267/43 
Page 4  
 
  Code Description of Goods* Increased 
Tariff (applied to US goods only) 
3304.10.00 -Lip make-up preparations  36% 
3304.99.10 Beauty creams; tonic lotions  36% 
3304.99.90 Other  36% 
3305.10.00 -Shampoos  36% 
3305.90.00 -Other  36% 
3306.10.00 -Dentifrices  36% 
3306.90.00 -Other  36% 
3307.10.00 -Pre-shave, shaving or after-shave preparations  36% 
3307.20.90 Other  36% 
3307.90.00 -Other  36% 
3401.19.00 --Other  36% 
3402.90.39 Other  36% 
3923.30.00 -Carboys, bottles, flasks and similar articles  36% 
4011.10.00 -Of a kind used on motor cars (including station wagons and racing cars)  32% 
4011.20.90 Other  32% 
4908.90.00 -Other  32% 
5201.00.20 Not further prepared than ginned  100% 
5201.00.90 Other  100% 
5203.00.00 Cotton, carded or combed  100% 
5208.21.00 --Plaine weave, weighing not more than 100 g/m²  100% 
5209.32.00 --3-thread or 4-thread twill, including cross-twill  100% 
5703.20.00 -Of nylon or others polyamides  60% 
5903.90.00 Other  48% 
6116.10.00 -Gloves impregnated, coated or  covered with plastics or rubber  60% 
6203.42.00 --Of cotton  100% 
6204.62.00 --Of cotton  100% 
6303.92.00 --Of synthetic fibres  60% 
6307.90.10 Of synthetic fibres  60% 
6307.90.90 Other  60% 
7113.19.00 --Of other precious metal other or not plated or clad with precious metal  36% 
8212.10.20 Razors  36% 
8212.20.10 Blades  36% 
8418.40.00 -Freezers, upright, not exceeding 900 litres capacity  40% 
8433.11.00 --Powered, with the cutting devi ce rotating in a horizontal plane  36% 
8471.90.12 Bar-code readers  22% 
8506.80.90 Other  32% 
8516.60.00 -Other ovens; cookers, cooking plat es, boiling rings, grillers and roasters  40% 
8517.12.31 Portable  32% 
8518.10.90 Other  40% 
 WT/DS267/43 
 Page 5 
 
 
  Code Description of Goods* Increased 
Tariff (applied to US goods only) 
8518.21.00 --Single loudspeakers, mounted in their enclosures  40% 
8518.22.00 --Multiple loudspeakers, mount ed in the same enclosure  40% 
8518.30.00 -Headphones and earphones, whether or not combined with a microphone, 
and sets consisting of a microphone and one or more loudspeakers  40% 
8518.50.00 -Electric sound amplifier sets  40% 
8521.90.90 Other  40% 
8525.80.19 Other  40% 
8525.80.29 Other  40% 
8527.21.90 Other  40% 
8528.49.29 Other  40% 
8703.21.00 --Of a cylinder capacity not exceeding 1 000 cc  50% 
8703.23.10 With a seating capacity of not more than 6, including the driver  50% 
8703.24.10 With a seating capacity of not more than 6, including the driver  50% 
8703.24.90 Other  50% 
8703.33.10 With a seating capacity of not more than 6, including the driver  50% 
8711.50.00 -With reciprocating internal com bustion piston engine of a cylinder capacity 
exceeding 800 cc  40% 
8903.92.00 --Motorboats, other than  outboard motorboats  40% 
8903.99.00 --Other  40% 
9004.10.00 -Sunglasses  40% 
9008.30.00 -Other image projectors  36% 
9018.32.19 Other  32% 
9018.39.10 Needles  32% 
9021.10.20 Splints and other fracture appliances  14% 
9021.39.80 Other  28% 
9102.11.10 With case of base metal  40% 
9403.70.00 -Furniture of plastics  36% 
9603.21.00 --Tooth brushes, including dental-plate brushes  36% 
 
* Brazil adopts the description contained in Mercos ur Common Nomenclature, which is based on the 
Harmonized Commodity Description and Coding System (HS). The Mercosur Common 
Nomenclature has authentic versions in Portuguese and Spanish. The translation above is made for 
reference purposes only. No right or privilege is waived  or lost by any error in the translation of the 
official descriptions.  
 
 
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