On Thursday April 18, the World Trade Organization (WTO) recognized the United States was right in a trade dispute with China, ruling that Beijing had not rightly set quotas for American wheat, rice, and corn.
The WTO, a Geneva-based organization that monitors global trade rules, has found that China has not provided a transparent, predictable, or fair approach to setting so-called tariff quotas for US grain exports by introducing an increased tariff for US grain deliveries that exceed the established quota.
The case started by the Obama administration is not directly related to the larger trade standoff between the U.S. and China: President Donald Trump has set $ 250 billion in tariffs on Chinese imports in a dispute over Beijing's aggressive desire to challenge U.S. technological dominance.China retaliated by setting tariffs of $ 110 billion for US goods. Both countries are negotiating to resolve their differences. The decision on Thursday was the second U.S. victory over China this year in a trade dispute over agriculture.
In February, the WTO ruled that China unfairly subsidizes its grain producers. “This second important victory for the United States once again demonstrates that President Trump will take all necessary steps to enforce trade rules and ensure free and fair trade for American farmers,” said US Trade Representative Robert Lighthouse and continued: “The administration will continue to put pressure on China in order to fulfill its WTO obligations as soon as possible. ”According to WTO rules, China may appeal against a decision.