United States - Subsidies on Upland Cotton - Recourse to Arbitration by the United States under Article 22.6 of the DSU and Article 4.11 of the SCM Agreement - Decision by the Arbitrator

World Trade Organization WT/DS267/ARB/1 31 August 2009 (09-4009) Original: English UNITED STATES – SUBSIDIES ON UPLAND COTTON Recourse to Arbitration by the United States under Article 22.6 of the DSU and Article 4.11 of the SCM Agreement Decision by the Arbitrator TABLE OF CONTENTS Page I. INTRODUCTION 1 A. Initial proceedings 1 B. Request for arbitration and arbitration proceedings 3 C. Organization of the proceedings and presentation of the Decision 5 D. Treatment of confidential information 6 II. overall Approach of the Arbitrator 6 III. Brazil's proposed Level of countermeasures in relation to Step 2 7 A. Is Brazil entitled to seek "one-time" countermeasures in relation to the failure by the United States to withdraw the Step 2 payments between 1 July 2005 and 31 July 2006? 8 1. Main arguments of the parties 8 2. Assessment by the Arbitrator 10 (a) Legal basis for Brazil's request for countermeasures in rela