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Brazil's President Luiz Inacio Lula da Silva - Source: Reuters
Brazil revealed a preliminary list of US patents and
intellectual property rights it could restrict unless both
countries settle a long-standing dispute over US cotton aid.
It is the second set of measures Brazil has unveiled in a week to
pressure Washington to obey a ruling by the World Trade
Organization that found the US cotton subsidies and export credit
guarantee program illegal.
Diplomats, trade experts and business leaders are closely watching
the case, one of a few in which the WTO has allowed
cross-retaliation, in which the wronged party can retaliate against
a sector not involved in the dispute.
Brazil would become the first country ever to apply cross
retaliation under WTO rules.
The new measures, which are still subject to public hearings, would
suspend for a limited time US patents on pharmaceuticals, chemicals
and biotechnology.
They would allow Brazil to restrict copyrights in the music and
audiovisual industry.
The measures listed in an official publication would also allow
the government to increase fees and tighten regulations on
registration of intellectual property rights.
On March 8 Brazil detailed 102 US goods that will be subject to
import tariffs within 30 days unless a last-minute agreement is
found.
Total retaliation between both series of measures would be $1.1
billion.
The WTO gave Brazil the formal go-ahead last year to impose
sanctions on US imports.
US Trade Representative Ron Kirk said last week the United States
still hoped to strike a deal with Brazil to avoid the
sanctions.
If it cannot, it will have to try to persuade Congress to change
the US cotton program to satisfy Brazil's concerns, he said.
Brazil has indicated it could accept a US pledge to send a reform
bill to Congress if Brazil were compensated for damages until the
bill's approval.
Some Brazilian business leaders have proposed compensation
through US investments into cotton research, as well as more US
imports of Brazilian beef, orange juice and ethanol.
