US defeats China at WTO in vast grain-subsidy case, after accusing Beijing of US$100 billion price propping

The World Trade Organisation on Thursday sided with Washington in a dispute it filed three years ago over “unfair” Chinese subsidies to its producers of wheat and rice.

Back in 2016, the United States alleged that China doled out US$100 billion in “market price support” for wheat and rice as well as corn production, above levels agreed at the Geneva-based WTO.

That in turn provided an artificial incentive for farmers to produce more, lowering prices elsewhere, the US said.

A panel established by the WTO’s Dispute Settlement Body to rule on the matter found Thursday that the grain subsidies provided by Beijing exceeded the accepted level, and that China had “acted inconsistently with its obligations” under international trade rules.