BRASILIA, July 28: Brazil welcomed on Friday a preliminary WTO report on US subsidies to its cotton growers, saying it upheld their complaint that Washington was not abiding by trade rules.

It also threatened to retaliate if the full WTO report, which is due out in October, found the United States had failed to fulfil an earlier order to remove the subsidies.

“Brazil is greatly satisfied by the conclusions made in this report,” said Roberto Azevedo, the foreign ministry's deputy secretary for economic affairs.

“We are very satisfied that it takes into consideration Brazil’s concern that measures taken by the United States to address the issue are not enough.”

Brazil believes its cotton producers are being harmed by US subsidies to its own cotton

farmers.—AFP