US Files Trade Challenge Against China at the World Trade Organization
mwaniki wanjiku | | Dec 16, 2016 03:43 AM EST |
(Photo : Getty Images) The Obama administration is concerned that China is pricing out American grain exporters.
The Obama government has launched its 15th challenge against China at the World Trade Organization,in a move that is sure to escalate a simmering debate over Chinese trade practices that US government officials said limit American farmers' abilities to export wheat, corn, and rice to China.
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The US government said that it took the action in an effort to get China to honor its commitment to allow set quantities of grain and corn to enter its borders. According to the agreement, the grain is supposed to enter China at lower tariffs.
Exporters frequently voiced concerns that countries make it difficult for products to gain entry at the lower tariff rates. "China's system is not transparent, fair or predictable," US trade officials said.
The US government complaint comes at a time when the US-China relations are fragile.
US President-elect Donald Trump angered China when he spoke by phone to Taiwan's president. He later suggested that he may reconsider the US policy that maintains only unofficial relations with Taipei.
The island broke from China in 1949, and China has warned that any changes to the "One China" policy that recognizes Taiwan as a province of the mainland will threaten the region's stability and also destroy relations with the US.
The US government has also said that it is frustrated with China's trade policies.
The new challenge to China is the second in recent months. In September, the US alleged that China was granting excessive subsidies to rice, wheat, and corn, driving up production from local producers and thus making it harder for American producers to export the same crops to China.
"China's policies limit opportunities for U.S farmers to export competitively priced, high-quality grains to customers in China," US Trade Representative Michael Froman said, adding that the US would aggressively pursue this challenge on behalf of American wheat, rice, and corn farmers.
Meanwhile, lawmakers from both sides of the political divide have applauded the effort.
Tagschina, Barack Obama, WTO, United States, donald trump
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