¡¡¡¡BRASILIA, Sept. 27 (Xinhuanet) -- Brazil filed charges on Friday with the World Trade Organization (WTO) against the United States for subsidies applied to cotton, and against the European Union (EU) for subsidies involving sugar.

¡¡¡¡It was the first time for a country to question other governments' grantings of subsidies to domestic producers.

¡¡¡¡The Brazilian government demanded the opening of a mechanism for controversy solutions, which would allow the gathering of reports on subsidy programs of the two major powers, and aim for satisfactory solutions for both parties within 60 days.

¡¡¡¡Figures provided by Brazil show the US increased subsidies to cotton from 1.9 billion US dollars in 1992 to three billion in 2001.

¡¡¡¡Brazil also accused the EU of exploiting export subsidies to lower sugar prices and hamper fair competition in world markets.

¡¡¡¡If differences remain unsolved within the 60-day period set forconsultations, Brazil could move to the next phase, which is litigation.

¡¡¡¡Analysts pointed out that the Brazilian initiative could give an impetus to other countries to challenge the agriculture policies of the United States and the EU, which until now, remain untouched.

¡¡¡¡In response to the charges, the 15-member EU bloc accused Brazil of illegally subsidizing Proalcohol, a company using sugarcane as a raw material to produce fuel.

¡¡¡¡Expecting this accusation in advance, the Brazilian AgricultureMinistry had prepared a 13-page document to defend its action.

¡¡¡¡A British civil organization, Oxfam, Friday disclosed a report on the negative impacts of US cotton subsidies on world markets.

¡¡¡¡Oxfam pointed out that if Brazil's fight succeeded, a large number of cotton producing countries would have a better chance ofreducing poverty. Enditem