Trade officials from the U.S. and China were unable to resolve their disagreements over the Obama administration’s allegations that Beijing provided more than $100 billion in illegal government subsidies for producing rice, wheat and corn. Pro Farmer’s First Thing Today newsletter says the United States now plans to ask the World Trade Organization to initiate an investigation into the matter at a meeting next week of the WTO’s dispute settlement body. The U.S. will argue that China violated the terms of a 2001 agreement to the WTO and provided trade-distorting domestic support in excess of its WTO commitments, according to the U.S. Trade Representative’s Office. If the U.S. succeeds, the dispute could force China to reduce its agricultural subsidies or face retaliatory trade tariffs worth tens of billions of dollars.
From the National Association of Farm Broadcasting news service.