Brazil is to decide by next week whether or not to push for sanctions on US exports, a senior Brazilian trade official told Dow Jones.

Brazil is considering asking the World Trade Organisation for sanctions of up to US$1bn on US imports, arguing the US has not adequately cut cotton subsidies.

The WTO already agreed last year that some US payments to cotton farmers and exporters were illicit.

"We will assess our next move very soon and make a decision probably next week," Roberto Azevedo, head of the economic department at Brazil's foreign ministry, was reported by Dow Jones as saying.