GENEVA: The World Trade Organization on Thursday largely sided with the United States in its Obama-era case against Beijing over Chinese restrictions on imports of American grain.
The WTO decision was the second in as many months to favor Washington’s position on trade with China in grain.Back in December 2016, Washington filed a complaint with the global trade body over what it claimed were illegal Chinese restrictions on imports of American rice, wheat and corn, describing China’s use of the so-called tariff-rate quota (TRQ) system as “opaque and unpredictable”, reports AFP.
Washington estimated at the time that American farmers could have exported some $3.5 billion more of such crops to China if the system had been used properly, and charged that Beijing had violated its commitments under international trade rules.
A panel of experts established by the WTO’s Dispute Settlement Body agreed Thursday that China had failed to adhere to the commitments it made when it became a WTO member in 2001 to administer the TRQs on a “transparent, predictable, and fair basis”.
But the panel said the US had failed to show that China violated its public notice obligation under the General Agreement on Tariffs and Trade (GATT) in respect to TRQs.
US officials hailed the panel’s decision on Thursday.
“The administration will continue to press China to promptly come into compliance with its WTO obligations,” US Trade Representative Robert Lighthizer said in a statement, joined by Agriculture Secretary Sonny Perdue.TRQs are two-level tariffs, allowing for a limited volume of imports to come in at a lower “in-quota” tariff level, and all other imports charged at an often much higher “out-of-quota” tariff.
Countries like China that joined the WTO after its creation in 1995 have had their TRQ commitments set out in their accession agreements.