USTR report: China’s non-compliance with WTO requirements harms American company 16.02.2022

China remains a “difficult and unpredictable market for US agricultural exporters” because it violates international trade standards set by the World Trade Organization. a new congressional report from the U.S. Trade Representative’s office.

In 2016, the U.S. challenged China over quota administration and domestic support for farmers, but Beijing has still not properly complied with WTO regulations in both cases.

“The inability or unwillingness of China’s regulators to regularly adhere to scientifically sound international standards and guidelines and to transparently and rule-based regulations will further complicate and hinder trade in agricultural products,” USTR concludes in a 64-page report. about five pages are devoted to agricultural stimuli alone.

When it comes to China’s promises of tariff quotas, now the country is probably importing enough to meet the targets set in China’s WTO accession agreement, but often this is not the case and there are still problems, USTR says.

“Due to China’s poorly defined criteria for applicants, unclear TRQ allocation procedures and non-disclosure of quota allocation and redistribution results, traders are unsure of available import opportunities and manufacturers around the world have reduced market access,” the USTR report said. “As a result, Chinese tariffs on wheat, corn and rice are rarely filled, even if they are often overstated.”

The WTO ruled in favor of the United States in 2019, and China has not appealed the decision, but the USTR is still not satisfied with China’s compliance.

When China joined the World Trade Organization about 20 years ago, it agreed to set a quota of 9.64 million tons for wheat, 7.2 million tons for corn and 2.66 million tons for corn. long-grain rice and a quota of 2.66 million metric tons for short and medium-grain rice. China was not obliged to buy grain from the United States, but it was generally assumed that American farmers would benefit.

One common complaint from the U.S. agricultural sector is that China has not adequately guaranteed that its major state-owned trading companies will not block imports as they have done in years past.

As for China’s domestic support policy, in 2019 the WTO board also ruled that the country was unfairly calculating support prices for wheat and rice farmers. The WTO has ruled that China has pushed subsidies much higher than was allowed in 2012-2015. Again, China did not appeal the decision, and the United States recognized victory.

But now the U.S. is bitterly complaining that China’s proposed new way of calculating subsidies is as unfair as the old method.

In addition, China continues to build new domestic pillars that harm U.S. fire exporters.

“In 2016, China established subsidies for starch and ethanol producers to stimulate the purchase of domestic corn, which led to increased exports of processed corn from China in 2017 and 2018,” the statement said.

China may also argue that the United States is failing to meet its WTO obligations. In 2020, the WTO commission ruled that the United States had violated its international obligations by circumventing the WTO dispute system and imposing $ 234 billion worth of tariffs on goods in China in 2018. These tariffs in section 301 were initiated during the Trump administration continue to operate, as do Chinese tariffs in response to a wide range of American agricultural commodities. China continues to waive some of these tariffs on a special basis when importers apply for temporary exemptions.

For more news, go to the page USTR report: China’s non-compliance with WTO requirements harms American company 16.02.2022

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