U.S. Wins Dispute Over Grains – China Gave Excessive Support

A panel of World Trade Organization judges found that China has provided trade-distorting domestic support to its grain producers well in excess of its commitments under WTO rules. China’s market price support policy artificially raises Chinese prices for grains above market levels, creating incentives for increased Chinese production of agricultural products and reduced imports.

The decision is a significant victory for the U.S. and potential ammunition in trade negotiations with Beijing. It also helps level the playing field for American farmers competing for global market share.

“We know that America’s farmers and ranchers thrive in a market-oriented, rules-based global economy. That means all countries must play by the rules, which is why this finding is so important to U.S. agriculture,” said U.S. Department of Agriculture Secretary Sonny Perdue.

The U.S. argued to the WTO that China overshot its support to wheat, corn and rice producers by $100 billion in 2015. The WTO judges ultimately agreed China exceeded its allowable subsidy limits for rice and wheat, but the support measures for corn had been removed before the case was initiated.

Sources: USDA, Politico