US Wins Dispute with China at WTO

Reuters is reporting:

“The United States won a World Trade Organization ruling on China’s price support for grains, successfully challenging a calculation methodology that is also used by India.

“A WTO adjudication panel agreed on Thursday with the U.S. complaint that China had paid farmers too much for wheat, Indica rice and Japonica rice in 2012-2015. A disputed corn subsidy had already expired.

“’China’s excessive support limits opportunities for U.S. farmers to export their world-class products to China,’ U.S. Trade Representative Robert Lighthizer said in a statement. ‘We expect China to quickly come into compliance with its WTO obligations.'”

Bloomberg notes:

‘The U.S. argued that between 2012 and 2015 the Chinese government announced an ‘applied administered price’ that it would make available to farmers immediately upon initiation of each year’s subsidy program. The U.S. contended that in doing so the Chinese government ensured commodity prices would remain at levels that gave an advantage to domestic producers over their foreign competitors.

“Later this year, the WTO is expected to issue a second ruling in a separate but related U.S. dispute over China’s import quotas for rice, corn and wheat. Trade experts also expect the U.S. will win that dispute, which alleges China applied discriminatory tariff-rate quotas (TRQs) for rice, wheat, and corn that undermined the ability of U.S. farmers to export their grain.

“U.S. farming groups are hopeful that a resolution to the U.S.-China agriculture disputes could provide the breakthrough needed to push China towards reforming its farm policies and in turn, provide a path towards a new WTO agreement on agriculture.”

Today, Kevin Brady of Texas, the top Republican on the Ways and Means Committee released a statement after the United States won a dispute ruling against China at the World Trade Organization (WTO) regarding Chinese agriculture subsidies:

“I commend President Trump and USTR’s legal team for an important win in this first-ever WTO challenge of China’s massive agricultural subsidies.  Today’s panel findings confirm that China’s subsidies to rice and wheat producers have significantly violated China’s WTO commitments for years, harming U.S. farmers in China and other global markets.

“President Trump is laser-focused on leveling the playing field for American companies and workers by addressing the full range of China’s unfair trade practices, and I strongly support his effort.  Aggressive pursuit of WTO litigation when China’s actions violate WTO rules is a critical component of this comprehensive approach.

“The unfortunate reality is that enormous effort is required to determine the level of China’s subsidies because China fails to live up to its obligation to be transparent about its policies.  That is another issue on which I continue to partner closely with President Trump and USTR toward necessary WTO reform.”

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