Brazil's final list of tariff increases in retaliation against USA less onerous than expected

Brazil's long-running battle with the USA over cotton subsidies, after the former won its argument through a World Trade Organization arbitration panel last year, took another step forward this week after the government finally announced the list of American product - which were expected to include pharmaceuticals - on which it would raise tariffs in retaliation.

Those expecting Brazil to take the opportunity to strike back strongly against the USA were disappointed, since the country preferred to adopt a more realistic approach in view of the already intricate commercial relationships with the US government. Further to that, the excellent export results and the stunning US investments in the past years should be preserved. Brazil cannot afford suffering stringent collateral effects from the retaliation, commented observers of the situation in Brazil.

Under the WTO ruling, Brazil is authorized to impose $829.3 million in retaliatory sanctions against US products, about $238 million covering intellectual property alone.