WTO Rules Against China Grain Supports

The World Trade Organization (WTO) has ruled against China, saying it provided trade distorting support for its grain producers.

The ruling comes from a U.S. Trade Representative request in 2016 for the WTO to make a panel to consider if China was providing too much market price support for rice, wheat, and corn.

The WTO panel decided the domestic support China used on rice and wheat since 2012 was well in excess of its commitment of 8.5 percent of the value of total production. It did not make comments on corn because China changed its program.

Most countries provide market price support programs, but China for decades has set up a self-sufficiency program to meet its own needs for food products like rice and corn.

U.S. Secretary of Agriculture Sonny Perdue says American Farmers and Ranchers will thrive when all countries play by the rules.

U.S. Trade Representative Robert Lighthizer adds the U.S. will take the steps needed to enforce fair trade, “The United States proved that China for years provided government support for its grain producers far in excess of the levels China agreed to when it joined the WTO.  China’s excessive support limits opportunities for U.S. farmers to export their world-class products to China.  We expect China to quickly come into compliance with its WTO obligations.”

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