Chief agricultural negotiator for the office of the US Trade Representative Darci Vetter wants the playing field with China leveled for American farmers.
The Obama Administration alleges China has failed to meet its World Trade Organization (WTO) market access commitments for rice, wheat, and corn and recently issued a trade enforcement challenge.
“The amount that China was spending on those subsidies exceeded its commitment by $100 billion in 2015,” she says.
Vetter says when farmers are guaranteed a high price, they are encouraged to produce more and if they are over-producing they crowd out market access for American farmers.
She says China’s policy on subsidies work together with its quota policies.
“Under the WTO, when China joined it, they established these quotas for wheat, rice, and corn,” she says. “What we’re alleging, is not only is China keeping domestic prices high and encouraging over production, it’s also able to maintain those domestic high prices and its subsidy program by prohibiting lower priced goods in wheat, rice, and corn from coming in.”
This is the 15th trade enforcement challenge against the Chinese government at the WTO since 2009.
Source: brownfieldagnews.com