The World Trade Organization (WTO)'s appeal court ruled on Monday that the United States had failed to remove its illegal cotton subsidies in compliance with an earlier WTO verdict.
Brazil, who brought the cotton case to the WTO, can now seek WTO approval for billions of U.S. dollars of trade sanctions on the United States.
"The U.S. failed to comply with its obligation to take appropriate steps to remove the adverse effects or withdraw the subsidy," the WTO's appeal court said in its final report on the case.
It also urged the United States to further adjust its subsidy measures so that they are in conformity with WTO regulations.
The WTO had ruled in 2004 and 2005 that the U.S. cotton subsidies, which amount to some 4 billions U.S. dollars a year, violated global trade rules.
After the ruling, the United States made some changes to its subsidy measures, but a WTO panel ruled at the end of last year that the United States did not do enough to correct its illegal measures.
Brazil, who brought the cotton case to the WTO, can now seek WTO approval for billions of U.S. dollars of trade sanctions on the United States.
"The U.S. failed to comply with its obligation to take appropriate steps to remove the adverse effects or withdraw the subsidy," the WTO's appeal court said in its final report on the case.
It also urged the United States to further adjust its subsidy measures so that they are in conformity with WTO regulations.
The WTO had ruled in 2004 and 2005 that the U.S. cotton subsidies, which amount to some 4 billions U.S. dollars a year, violated global trade rules.
After the ruling, the United States made some changes to its subsidy measures, but a WTO panel ruled at the end of last year that the United States did not do enough to correct its illegal measures.
