U.S. Trade Representative Robert Lighthizer and Secretary of Agriculture Sonny Perdue announced that a World Trade Organization (WTO) dispute settlement panel 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.
This report should help American farmers compete on a more level playing field. This dispute is the first to challenge China’s agricultural policies that disregard WTO rules. “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. We expect China to quickly come into compliance with its WTO obligations,” said Ambassador Lighthizer.
“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 Secretary Perdue.