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US wins another big case against China, as WTO rules Beijing unfairly used tariff-rate quotas to block wheat, rice and corn

  • Ruling sides with US complaints that Beijing administered tariff-rate quotas for wheat, rice and corn in a way that was not transparent, predictable or fair

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Staffers adjust US and Chinese flags before the opening session of trade negotiations at the Diaoyutai State Guesthouse in Beijing on February 14, 2019. Photo: Reuters

This story is published in a content partnership with POLITICO. It was originally reported by Adam Behsudi on politico.com on April 18, 2019.

The United States prevailed in a WTO fight with China over a dispute in which Washington accused Beijing of unfairly blocking access for US farm goods to its market through restrictive use of tariff-rate quotas.

The ruling released on Thursday by the WTO sided with US complaints that China administered tariff-rate quotas for wheat, rice and corn in a way that was not transparent, predictable or fair, and therefore violated commitments Beijing made when it joined the WTO.
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A tariff-rate quota generally involves a much lower tariff for products imported within the quota and imposes a significantly larger tariff for any imports that fall outside the quota.

The World Trade Organisation headquarters in Geneva on on September 21, 2018. Photo: AFP
The World Trade Organisation headquarters in Geneva on on September 21, 2018. Photo: AFP
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The ruling helps bolster the Trump administration‘s position in ongoing negotiations aimed at reining in Beijing‘s trade practices.

US Trade Representative Robert Lighthizer said in a statement that the ruling “further demonstrates that President Trump will take all steps necessary to enforce trade rules and to ensure free and fair trade for US farmers”.

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