US authorities filed complaint against China to the World Trade Organization, accusing China of unfair allocation of subsidies for rice, wheat and corn and the redundant support of agriculture in the country, according to BBC materials.
“China’s government set much higher prices for wheat, corn and rice than the market level, which led to unfair state subsidies, violating WTO rules”, according to the statement of US President Barak Obama.
According to the USA, China exceeded the agreed amount of subsidies for national rice producers by USD 100 mln in order to stimulate Chinese farmers to increase production.
“These programs distort prices in China, depreciate US farmers’ labor and violate those restrictions, which China agreed to observe when entering WTO”, - US representative Michael Froman said at trade negotiations
The complaint on behalf of USA is submitted amid the decreased export of agricultural products from the USA to China.
As US Secretary of Agriculture Tom Vilsack previously noted, the cancellation of some trade restrictions on the part of China allowed increasing annual export of products to this country from USD 2 billion in 2001 to more than USD 20 billion this year.
“Unfortunately, the price support on the part of China stimulates wheat, corn and rice production inside China and this drives out import”, - he explained.