* Brazil prepares retaliation against U.S. cotton aid
* Aims to add sanctions on intellectual property right
BRASILIA Nov 6 Brazil will publish on Monday a
preliminary list of U.S. goods it intends to hit with trade
sanctions in retaliation for Washington's cotton subsidies, a
senior government official told Reuters.
The move is the strongest indication yet that Brazil
intends to levy trade sanctions on Washington in the
long-standing cotton dispute, which diplomats say could sour
"If the United States does not change its position, we will
retaliate," Lytha Spindola, executive secretary of the
government's foreign trade chamber Camex, said in an interview
In August the World Trade Organization set out terms for
Brazil to retaliate against U.S. cotton subsidies, including
marketing loans and counter-cyclical payments.
Brazil says it is entitled to some $800 million in
sanctions this year, including $340 million in
cross-retaliation. The United States has estimated sanctions at
about $300 million with no cross-retaliation.
The list would include 120 items worth between $1.5 billion
and $2 billion annually, Spindola said. Following consultations
and public hearings, the list would be cut back to represent a
value of around $800 million.
By year-end the list would also include sanctions on
patents and other intellectual property rights. The government
was preparing legislation to strengthen its case for such a
measure, Spindola said.
The actual value of the sanctions would depend on how much
the U.S. government spends on cotton subsidies this year.
In September Brazil said it would request data on the size
of U.S. export credits in the current year.
That request followed a visit by U.S. Trade Representative
Ron Kirk to Brazil, during which he said the United States
welcomed Brazil's offer to discuss the stand-off but would wait
for Brasilia to decide on possible countermeasures.
(Reporting by Raymond Colitt; Editing by Xavier Briand)