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WTO panel says U.S. won grain subsidy dispute

The World Trade Organization has ruled China’s ag subsidies for wheat, corn, and rice exceed the WTO’s limits.

In 2016, the U.S. Trade Representative’s office filed a complaint with the WTO that argued subsidies for these crops distort world markets and lead to billions of dollars in losses for U.S. farmers and exporters every year.

In a statement, U.S. Trade Representative Robert Lighthizer and Ag Secretary Sonny Perdue say China’s price support policy artificially raises prices for grains and encourages increased production and reduced imports of ag goods

USTR Chief Ag Negotiator Gregg Doud says its perhaps the biggest WTO case in history.

“When it comes to wheat, rice, and corn, we think China has exceeded what it was allowed to do when it became a member of the WTO by somewhere in the neighborhood of 80-100 billion dollars,” he says.

Lighthizer says he expects China to quickly comply with WTO obligations.

House Agriculture Committee Ranking Member Michael Conaway says the ruling proves the need for strong farm policy. In a statement, he said Free Trade doesn’t exist without everyone playing by the same rules and he commended President Trump for insisting other countries live by the same rules.