Wheat, rice growers pleased with WTO ruling
The National Association of Wheat Growers and USA Rice said last week they are pleased with the World Trade Organization’s dispute panel ruling that China’s domestic subsidies for wheat and rice are in violation of its WTO obligations.
“We are very happy with it,” said NAWG CEO Chandler Goule at a news conference during the Commodity Classic in Orlando, Fla.
“The WTO ruled against programs that the Chinese were subsidizing their growers at more than $10 per bushel,” Goule added.
“USA Rice is pleased with this outcome,̦ said COO Bob Cummings in a news release.
The economic impacts of China’s practices are enormous. In 2015, the year before the WTO case was filed, China’s “market price support” for rice, corn, and wheat was estimated to be nearly $100 billion in excess of the levels China committed to when it joined the WTO, Cummings said.
“The WTO ruling vindicates the USA Rice stance that China has for years been undertaking excessive and illegal support programs, and it will set a precedent for the future,” said Cummings.
“Many other countries are believed to be subsidizing their agricultural producers in excess of their WTO commitments, and we believe this ruling is a compelling reason for them to curb these practices.”
The future of the case is uncertain. China has said it will review the findings, but has not said whether it will exercise the right of appeal in the next 60 days.
Meanwhile, the United States continues to block appointments of new judges to the appellate body which would take up the appeal. If there is no resolution, there will not be enough judges to consider it.
–The Hagstrom Report
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User