This is Bob Doughty with the VOA Special English EconomicsReport.

Last week, a group of three World Trade Organization officialsruled against the United States in a case brought by Brazil. Theyruled that government payments to American cotton farmers violateinternational trade rules.

Brazil seeks to stop the United States government from providingfinancial assistance to American cotton farmers. The assistancepermits American farmers to plant more crops and produce extracotton. This leads to lower prices for cotton on the world market.Brazil says the United States government unfairly hurts it foreigncompetition as a result. The United States is the world's largestexporter of cotton.

The ruling by the W.T.O. officials was not made public. TheUnited States and Brazil are permitted time to seek changes to theruling before a report is released. The W.T.O. is expected toannounce a final decision on the issue in June.

United States Trade Representative Robert Zoellick says thegovernment would appeal a W.T.O. decision supporting the ruling. Hesays the United States will fight for its agricultural interests bynegotiation or through legal action. The United States says itspayments to farmers are permitted under W.T.O. rules.

Mister Zoellick also criticized Brazil's method of dealing withthe farm assistance issue. He suggested that Brazil could have savedtime and protected relations by discussing its concerns in worldtrade talks.

But Brazil's Ambassador to the United States Roberto Abdenurobjected to the criticism. Ambassador Abdenur said Brazil was forcedto seek W-T-O judgement. He says the United States and othercountries are unwilling to negotiate.

The United States pays about twenty-five-thousand cotton farmersmore than two-thousand-million dollars a year. It also makespayments to other farmers. Japanese and European governments alsoprovide such support to farmers. And Brazil is not the only countryangry about the issue. Several African representatives opposed farmassistance policies at a W.T.O. ministers meeting earlier this year.They argued that such policies hurt developing nations.

Experts say other countries may seek similar action againstAmerican, European or Japanese farm assistance if the W.T.O. rulesagainst the United States on the cotton issue.

This VOA Special English Economics Report was written by CatyWeaver. This is Bob Doughty.