USDA Proposes to Allow Imports of Swine, Pork Products from Brazil as First Step on "Path Forward" towards Settlement with Brazil over WTO Cotton Dispute

April 16, 2010

On April 6, 2010, the U.S. and Brazil agreed on a “Path Forward” toward a negotiated settlement for over the World Trade Organization Upland Cotton Dispute. The agreement staves off $560 million in retaliatory tariffs and suspended intellectual property rightsfor the U.S. continuing failure to a$288 million in bide by the WTO’s ruling.

In exchange for agreeing not to apply sanctions, the United States agreed to work with Brazil to establish a fund of approximately $147.3 million per year on a pro rata basis to provide technical assistance and capacity building. Under terms to be agreed by the United States and Brazil in the Memorandum of Understanding, the fund would continue until passage of the next Farm Bill or a mutually agreed solution to the Cotton dispute is reached, whichever is sooner. The fund would be subject to transparency and auditing requirements.

The U.S. also agreed to make some near term modifications to the operation of the GSM-102 Export Credit Guarantee Program faulted by the WTO, and to engage with the Government of Brazil in technical discussions regarding further operation of the program.

The U.S. also agreed to publish a proposed rule by April 16, 2010, to recognize the State of Santa Catarina as free of foot-and-mouth disease, rinderpest, classical swine fever, African swine fever, and swine vesicular disease, based on World Organization for Animal Health Guidelines and to complete a risk evaluation that is currently underway and identify appropriate risk mitigation measures to determine whether fresh beef can be imported from Brazil while preventing the introduction of foot-and-mouth disease in the U.S.

Because Santa Catarina has a common land border with Argentina, a region where foot-and-mouth disease exists, however, APHIS is proposing that the importation of meat and other products from swine or ruminant animals into the U.S. from Santa Catarina be subject to the following restrictions:

• They would have to be prepared in an inspected establishment that is eligible to have its products imported into the U.S. under the Federal Meat Inspection Act; and
• They would have to be accompanied by an additional certificate issued by a full-time salaried veterinary official of the Brazilian government assuring that the meat or other animal products have not been commingled with or exposed to meat or other animal products originating in, imported from, transported through, or that have otherwise been in a region where foot-and-mouth disease exists.

For more on USDA’s proposed rule, click here.