China Guilty of Violating World Trade Organization Responsibilities

A World Trade Organization dispute settlement panel has found China administered its tariff-rate quotas (TRQs) for wheat, corn, and rice inconsistently with its WTO commitments. The panel ruled that China’s TRQ administration lacks transparency, is not predictable, not fair, and it ultimately prevents TRQs from filling.

In turn, that denies U.S. farmers’ access to China’s grain markets, a clear violation of its WTO commitments.

A USDA release says the panel report is the second significant victory for American agriculture this year. Together with the victory against China’s excessive domestic support for grains, this should help American farmers compete on a more level playing field.

USDA estimates that if Chinese TRQs had been fully used, the country would have imported up to $3.5 billion worth of corn, wheat, and rice in 2015 alone.

Ag Secretary Sonny Perdue said, “Making sure our trading partners play by the rules is vital to providing our farmers the opportunity to export high-quality, American-grown products to the world. The announcement is another victory for American farmers and fairness in the global trade system.”