(PTI): Brazil can now impose sanctions on the US products in order to compensate for the losses Washington has inflicted on the Latin nation by its unfair cotton subsidies, WTO says.

The World Trade Organization on Thursday authorized Brazil to impose trade sanctions or punitive levies on the United States for its illegal support for American cotton exporters.

“Today is the day that Brazil received authorization to retaliate … They can start imposing sanctions whenever they want,” said a trade source, according to AFP.

The move, formally taken by the WTO’s Dispute Settlement Body (DSB), gave Brazil a better opportunity to retaliate against the United States, the world’s biggest cotton exporter.

The two nations are entangled in a highly sensitive 9-year-old row over the issue.

Washington, on the other hand, claimed that it intended to “comply” with the trade laws it has breached so far, noting that there were ‘no need’ for Brazil to impose retaliatory sanctions.

“While the United States understands that the DSB will today be authorizing the suspension of concessions or other obligations, we do not believe that it will be necessary for Brazil to exercise that authorization,” said the American WTO diplomat, Juan Millan, in a statement.

According to the WTO regulations, sanctions can be put in place until the offending party brings its trade regime in compliance with the international regulations.

Brazil has drafted a list of 22 imported US products, including oils, drinks, medicines, hygiene products, some cotton products as well as electronic goods on which it could levy punitive duties.

The US subsidies are reported to have distorted the world market and hurt farmers in poor countries.