The World Trade Organization (WTO) has upheld a ruling condemning government aid for cotton producers in the United States.
The organization announced the decision Thursday. It said that many U.S. programs include illegal export subsidies or domestic payments that are higher than permitted by WTO rules.
Brazil had issued a complaint saying the U.S. support artificially drove down world prices and hurt Brazilian producers.
A spokesman for the U.S. Trade Representative says negotiation, not litigation is the most effective way to address distortions in global agriculture.
There was no immediate reaction from Brazil.
The WTO's decision comes as trade ministers from about 30 governments hold talks in Kenya on a global trade deal.
Some information for this report provided by Reuters and AFP.