The Brazilian government has announced increased trade tariffs against a variety of American goods in response to illegal US subsidies to cotton farmers.
Brazil on Monday published a list of 100 US goods subject to import tariffs that will go into effect in 30 days, unless the two sides can reach an agreement.
The list includes a tariff increase on cars, non-hard wheat and a levy on milk powder.
Last year, the World Trade Organization gave Brazil permission to impose sanctions on US imports after the body ruled the US spent too much subsidizing cotton farmers on an export credit guarantee program.
The United States expressed regret at the Brazilian action, saying it preferred to resolve the issue through talks.
“We are disappointed to learn that Brazil’s authorities have decided to proceed with countermeasures against US trade in the WTO cotton dispute,” Nefeterius McPherson, spokeswoman for the US Trade Representative, said.
Bilateral trade between the two countries fell to $36 billion in 2009 from $53 billion in 2008.
The World Trade Organization has authorized the South American country to impose levies as high as 14 and 100 percent on US imported goods.
The higher tariffs on US products including cosmetics, home and kitchen appliances, cars and boats would worth USD 591 million annually, AFP reported.
Brazil may apply another USD 238 million penalty in sectors like intellectual property and services.
According the US Embassy in the Brazilian capital, Brasilia, the US Commerce Secretary Gary Locke will visit the South American nation on Tuesday in a bid to settle disagreements.
“There is time for us to resolve this in a peaceful and productive way without any further action,” the US Secretary of State Hillary Clinton said during a visit to Brazil last week.
Earlier this month, Brazil set a 30-day deadline for Washington to reach a mutual deal to avoid higher levies.
“We want a comprehensive solution to this issue; so far we have not received a concrete response,” said Carlos Marcio Cozendey, head of the economics division at the Brazilian foreign affairs ministry.
