Brazil is set to challenge the controversial us farm subsidy programme. It is likely to file a case with the World Trade Organisation (wto) regarding the farm bill that would deprive the Brazilian soyabean and cotton farmers of more than us $1.5 billion a year in exports while boosting annual subsidies to us farmers by more than us $7.3 billion. It is believed that Brazil would seek around us $1 billion a year in injuries caused due to us soyabean subsidies and more than us $500 million a year for cotton subsidies. us soyabean subsidies prevent Brazil's farmers from gaining access to other markets.

us President George Bush, however, said that Brazil appeared to be choosing a route of confrontation over negotiation when all wto countries are discussing sweeping agricultural reforms.