U.S. Wins WTO Challenge to Chinese Crop Subsidies

(GENEVA, SWITZERLAND) Two years ago, the United States and Canada challenged China’s domestic support commitments for wheat, corn, and rice. On Thursday, a World Trade Organization (WTO) dispute settlement panel found that China has violated its commitments under international rules and had paid farmers too much for wheat, Indica rice and Japonica rice in 2012-2015. For corn, the panel declined to make findings on the support provided to corn given that China had apparently changed its program in 2016, just prior to the establishment of the panel. The U.S. Trade Representative (USTR) claimed that China had paid farmers almost $100 billion more than their agreement allows under WTO rules. The country is allowed to pay up to 8.5 percent of the total value of production. Reuters reports that “the ruling, which may be appealed, could have ramifications for India, which has made similar arguments to China.”