US wins WTO ruling against China’s grain tariff-rate quotas

US wins WTO ruling against China’s grain tariff-rate quotas

Mubasher: The US prevailed in a World Trade Organization (WTO) dispute with China, in which Washington accused Beijing of limiting market access for American farm goods through tariff-rate quotas for rice, wheat and corn, CNBC reported.

A WTO dispute panel ruled on Thursday that China administered tariff-rate quotas in a way that violated its commitment to administer them on a “transparent, predictable and fair basis”

In general, tariff rate quotas includes a much lower tariff levied on goods imported within the quota, and a much higher duty for any imports that are not covered in the quota.

China’s administration of state trading enterprises and non-state ones portions of the tariff-rate quotas is inconsistent with WTO regulations, the panel said.

The outcome of the case, which was filed by the Obama administration in late 2016, came amid trade talks between the US and China.

It also came right after Washington won a WTO ruling on Beijing’s price support for grains last March.

US Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue hailed the ruling.

WTO’s two rulings would support US farmers to “compete on a more level playing field,” Lighthizer said, adding that Washington “will continue to press China to promptly come into compliance with its WTO obligations.”

On the other hand, China’s Ministry of Commerce said it “regrets” the WTO’s decision, adding that it would “earnestly evaluate” the panel’s report.