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State Department Official Warns Against Brazil Sanctioning US

A top U.S. official has warned against Brazil imposing sanctions on the United States in a dispute over cotton subsidies.

Deputy Secretary of State Robert Zoellick said in Brazil Thursday that there is always a danger in trade relations of things slipping out of control if one side decides to retaliate.

He said the United States is working to resolve the dispute.

Earlier, Brazil asked the World Trade Organization for permission to impose $1 billion in sanctions on U.S. goods for the United States failing to comply with a WTO decision that calls for steep cuts in subsidies for U.S. cotton producers.

The request is to be discussed at a WTO meeting later this month.

The WTO ruled in March the subsidies must be changed to comply with global trade rules. Brazil says the subsidies artificially drive down world prices and hurt Brazilian producers.

Some information for this report provided by AFP and Reuters.