Aggressive Enforcement of Trade Agreements Critical
Washington, D.C. – Yesterday, the Obama administration challenged China on its support for its own rice, corn, and wheat producers. The administration based its challenge on the fact that Beijing is subsidizing these industries in excess of levels agreed to in trade agreements. According to the Wall Street Journal, the Chinese government spent almost $100 billion more than allowed under WTO “market price support” on ag products during 2015.
The case being brought against China relates to long-grain Indica rice, the short- and medium-grain Japonica variety, as well as wheat and corn.
Today, Representative Crawford, Chairman of the General Farm Commodities and Risk Management Subcommittee, released the following statement:
“Other nations often target the United States through the WTO to reduce our competitiveness. At the same time, the WTO regularly critiques the United States’ modest agricultural support systems while routinely ignoring the violations of other nations. Our producers can’t be asked to compete under those circumstances when countries like China use price-distorting practices that cost U.S. farmers hundreds of millions of dollars per year. If we want to maintain our position as a strong producer of food and fiber, the USTR must continue to push aggressively against nations who are willing to break the rules we’ve all agreed to follow.”