Tuesday, September 13th 2016
The Obama Administration has launched a new trade enforcement action against the People's Republic of China at the World Trade Organization (WTO) concerning excessive government support provided for Chinese production of rice, wheat, and corn. United States Trade Representative Michael Froman and United States Secretary of Agriculture Tom Vilsack were joined by bipartisan members of Congress in announcing the complaint which challenges China's use of "market price support" for three key crops (rice, wheat, and corn) in excess of China's commitments under WTO rules. In 2015, China's "market price support" for these products is estimated to be nearly $100 billion in excess of the levels China committed to during its accession. China's excessive market price support for rice, wheat, and corn inflates Chinese prices above market levels, creating artificial government incentives for Chinese farmers to increase production. The United States is challenging China's government support on behalf of American rice, wheat, and corn farmers to help reduce distortions for rice, wheat, and corn, and help American farmers to compete on a more level playing field. This trade enforcement action marks the 14th complaint brought by the Office of the United States Trade Representative (USTR) against China at the WTO since 2009. It demonstrates the Obama Administration's ongoing commitment to ensuring China abides by its WTO obligations, and to strictly enforcing the trade agreements that protect the interests of American farmers, workers, and businesses. The Administration has taken, and will continue to take, all steps necessary to ensure American farmers, workers, and businesses can compete and win on a level playing field in the global economy.