Brazil, U.S. locked in trade disputes over cotton subsidies, meat

WASHINGTON, June 3 (UPI) -- Trade disputes between Brazil and the United States have stalled talks on cotton subsidies and, on a different level, processed Brazilian meat exports to U.S. consumer markets.

The Council on Hemisphere Affairs, which has headquarters in Washington and backs formulation of rational and constructive U.S. policies toward Latin America, questioned the administration's stance on cotton subsidies.

"While pressuring developing countries to adopt pro-trade measures, the U.S. does not enforce its WTO commitment on cotton subsidies," said the council, a non-profit organization.

Brazil has been campaigning against the subsidies paid out to U.S. cotton producers, which it argues damage Latin American cotton trade.

A Brazil-U.S. memorandum signed in April was expected to end the dispute and ease tensions over the subsidies.

The accord set the stage for a U.S.-financed fund that could be allocated to cotton producers in Brazil and elsewhere to end the longstanding row over the subsidies.

But, the council said, the accord could also be taken as "a token agreement and as a refusal by the U.S. to reform its basic system and to comply with international regulation."

Alongside the unresolved issues with the subsidies, Brazil has suspended exports of processed meat to U.S. markets following controversy over residues found in the meat.

Brazil imposed the ban in May after a shipment of meat was recalled by meat packer JBS when U.S. authorities said it showed traces of a medicine exceeding the limit.

Brazilian Agriculture Ministry official Nelson Costa said the ministry requested details of tests used on the beef but a methodology provided by the U.S. side lacked key details.

"We have a meeting for June 7 and 8 in the U.S. to discuss this," he said.

The United States is the largest market for Brazilian processed meat. Exports in 2009 totaled $223 million, a significant portion of Brazil's $4 billion annual beef exports worldwide.

"We want to know if some additive could interfere with the result. (The test) is not validated," Costa said.

The U.S. tests on the JBS shipment showed the presence of ivermectin, a de-wormer and antiparasitic medication used to expel intestinal worms, of between 10.3 and 14 parts per billion. The U.S. limit is 10 parts per billion while Brazilian regulation permits up to 100.

Meat packer Marfrig said it would begin shipping canned meat to the United States from processing plants in Uruguay and Argentina to ensure that shipments continued while Brazilian and U.S. officials tried to resolve the dispute. Brazilian exporters would continue serving other destinations, officials said.