Brazil will ask the World Trade Organisation for the right to impose sanctions on the United States for not complying with a world trade ruling to end cotton subsidies that block poor nations from markets.
The United States, the world's No 1 cotton exporter, failed to meet a September 21 deadline to end cotton subsidy programs, or counter their effects, said Roberto Azevedo, head of the trade disputes department at Brazil's Foreign Ministry.
"We will start the procedures that will allow Brazil to impose sanctions if Brazil thinks it necessary at the appropriate time," Azevedo told Reuters in a telephone interview.
The United States on Wednesday said it had taken "significant" steps to reform cotton subsidies in line with the WTO ruling and urged Brazil not to seek litigation after a delay by the US Congress in implementing new legislation.