Brazil seeks WTO probe of US farm, ethanol subsidies

Brazil will ask the World Trade Organization to formally investigate U.S. farm subsidy programs, which it says includes payments for ethanol production, a senior Brazilian official said Tuesday.

The South American country, which has already won a series of WTO rulings over U.S. cotton subsidies, will make its request for an investigative panel soon, said Roberto Azevedo, the Brazilian Foreign Ministry’s trade chief.

The dispute could become a major case for the global commerce body, which has largely steered clear of energy issues in its 12-year history.

It also could become a hot topic for U.S. presidential candidates as they gear up for the January start of primary contests in Iowa, the American state that produces the most ethanol.

“Brazil will have to ask for a panel,” Azevedo told The Associated Press.

The two countries held consultations last month after Brazil accused the United States of exceeding in six of the past eight years the US$19.1 billion (