After finally turning the page on a dispute over spying that hampered attempts to deepen trade ties, Brazil and the US may be headed for another clash, this time over US farm subsidies.

Brasilia is gathering evidence to show that the US is increasing subsidies for soy and corn farmers, which threatens to further push down prices for the key crops grown in the South American country and hurt its already sputtering economy, four Brazilian officials said.

Although it is too early to launch a full-out trade dispute, Brazil plans to apply pressure on Washington by questioning its farm programme at the World Trade Organisation’s agriculture committee and by rallying support among other commodities exporters, officials said.

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