By Sari Heidenreich

WASHINGTON (MNI) - U.S. Trade Representative Ron Kirk Tuesday said his department is negotiating to prevent the proposed $591 million in tariffs Brazil is set to impose on U.S. imports next month.

The U.S. Trade Representative's Office is "seeing if there is not a way for us to resolve this retaliation," Kirk said at a National Press Club luncheon. "But ultimately if we cant do that were going to have to work with Congress to see if we can come up with the means to comply."

Brazil announced Monday morning that it will impose approved World Trade Organization sanctions against the U.S. in another month. Brazil plans to raise tariffs on 102 U.S. products resulting in duties on some products, such as cotton, as high as 100%. The U.S. has 29 days left to negotiate before the tariffs are imposed.

Brazil's move is a response to the U.S.'s $3 billion subsidy of its cotton market. Brazil, along with the WTO, sees the cotton subsidy as a U.S. effort to undersell foreign competitors and depress world market prices.

Speaking to U.S. efforts to reach a resolution before the tariffs are imposed, Kirk said Gary Locke, U.S. Commerce secretary, and Michael Froman, a White House adviser for international economic affairs, are currently in Brazil negotiating with the administration. Additionally, a U.S. team met with Brazilians two weeks ago while in Argentina.

Kirk said Deputy Trade Representative Miriam Sapiro is also engaged with their Brazilian counterparts on at least a weekly basis.

"Dispute resolution is, in fact, a healthy part of any trade relationship," Kirk said.

To resolve current disputes and achieve their trade goals, Kirk said the Obama administration is committed to abiding by international rules.

"Our support for our trade policy begins with a staunch belief that this only works if we have a rules-based system," Kirk said. "And that has to apply to the United States as well as it does to our partners."

Responding to those who accuse the U.S. of not abiding by such policies, Kirk said they should "put the United States compliance record up in the WTO against any of our trading partners," claiming that the U.S. has historically complied with policies once they had "exhausted our pill remedies."

** Market News International Washington Bureau: 202-371-2121 **