United States - Subsidies on Upland Cotton - Recourse to Arbitration by the United States under Article 22.6 of the DSU and Article 7.10 of the SCM Agreement - Decision by the Arbitrator

World Trade Organization WT/DS267/ARB/2 31 August 2009 (09-4015) Original: English UNITED STATES – SUBSIDIES ON UPLAND COTTON Recourse to Arbitration by the United States under Article 22.6 of the DSU and Article 7.10 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 II. overall Approach of the Arbitrator 6 III. Preliminary issue: do changes in the legal basis of the Marketing loan and countercyclical payments affect Brazil's entitlement to take countermeasures? 6 A. Arguments of the parties 7 B. Assessment by the Arbitrator 8 IV. Assessment of Brazil's proposed Level of countermeasures 12 A. Main arguments of the parties 12 B. Mandate of the Arbitrator and burden of proof 13 C. Countermeasures "commensurate with the degree and nature of