The United States has won a World Trade Organization ruling against China’s use of tariff rate quotas for rice, wheat and corn. They successfully argued the TRQs limited market access for U.S. grain exports. National Corn Growers Association President and Nebraska farmer Lynn Chrisp says that’s a positive ruling for the industry.
Under the recent decision, the WTO said China wasn’t filling it’s TRQs. The USDA estimates if those had been fully used, China would have imported up to $3.5 billion worth of corn, wheat and rice in 2015 alone. Chrisp says that’s significant.
He says this recent ruling shows how important it is to have the WTO to settle trade disputes.
Chrisp is hoping China responds positively to the WTO ruling and follows through with its commitments. The case was lodged in late 2016, and marks the second U.S. trade victory. In March the WTO ruled China’s price supports for grain violated trade rules. The two rulings will help American farmers compete on a more level playing field.
