U.S. Formally Challenges China
September 14, 2016
The U.S. challenges China over accusations of illegal farm subsidies to Chinese farmers. Officials argue this makes it harder for American farmers to export the same crops to China.
In the nation’s capitol Tuesday, the Obama administration lodged a formal complaint with the World Trade Organization alleging China of illegally subsidising its rice, wheat and corn producers. The complaint alleges that last year, China’s support for these grains exceeded the levels China committed to when it joined the WTO -- by a whopping $100 billion.
U.S. trade representatives say that created artificial incentives for Chinese farmers to increase production, undercut U.S. farmers, and skewed global markets.
U.S. wheat associates say wheat growers have lost between 650 and 700 million dollars annually from China’s programs, which it says suppresses prices paid to U.S. farmers.
Alan Tracy serves as the president of U.S. Wheat Associates and says that wheat production subsidies in China and other advanced developing countries are the single biggest policy issue affecting our farm gate prices and global trade flows.
Tracy says that in taking this step, the office of the U.S. Trade Representative and USDA are demonstrating that trade enforcement can ensure that our many trade agreements and a pro-trade agenda really work for American farmers.