US government launched legal action against $100 billion worth of “unfair” Chinese rice, wheat and corn subsidies at the World Trade Organization.
According to USA, China’s government has set prices for wheat, corn, and rice well above market levels, which has led to unfair government subsidies that are in violation of WTO rules.
The Obama administration accused China of breaking trade rules on its price supports for domestic production of rice, wheat and corn.
China’s “market price support” for the grains is nearly $100 billion above the WTO limits, and amounts to an artificial incentive for Chinese farmers to increase output.
It’s the 14th complaint brought against China by the Obama administration at the WTO.
Mr. Obama said the case also illustrates the need for Congress to approve the Trans-Pacific Partnership, a free-trade deal with 11 other Pacific rim nations, excluding China.