Wheat Organizations Applaud Trump Administration’s Aggressive Trade Enforcement at the WTO

Joint release from the National Association of Wheat Growers and U.S. Wheat Associates.

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the decision by the Trump Administration to make sure China is living up to its commitments on wheat trade. In response to action by the Administration, the World Trade Organization (WTO) Dispute Settlement Body has established a panel to rule on a complaint filed in December 2016 by the United States Trade Representative (USTR) regarding China’s administration of its tariff rate quotas for wheat and other agricultural products. USW and NAWG are very pleased with the Trump Administration’s aggressive use of the WTO dispute settlement mechanism on behalf of wheat farmers.

This is the second panel established at the WTO under the Trump Administration to defend the interests of wheat farmers. The first will examine whether China’s market price support programs for wheat, corn, and rice violate its trade commitments. According to a 2016 Iowa State University study sponsored by USW, China’s market price support programs cost U.S. wheat farmers between $650 and $700 million annually in lost revenue by pre-empting export opportunities and suppressing global prices.

China also has a WTO commitment for an annual tariff rate quota of 9.64 million metric tons (MMT) of imported wheat. The panel established Sept. 22, 2017, in the tariff rate quota case will review evidence that China has not administered this tariff rate quota in a transparent, predictable and fair manner as required by its WTO obligations. The result is that China’s tariff rate quota administration unfairly impedes wheat export opportunities for U.S. wheat farmers, as well as farmers from Canada, Australia and other wheat exporting countries, to the detriment of Chinese consumers.

“We are grateful that this administration is taking a tough stance in regard to these trade violations,” said Justin Gilpin, CEO of Kansas Wheat. “In Kansas and around the world, local wheat prices have long been impacted by these market distorting practices and WTO violations by China.  We look forward to a solution that is beneficial to both American wheat farmers and the people of China.”
“It is very encouraging to see the Trump Administration defend farmers against governments that say to the world they will live up to their commitments, but then scheme to disregard the rules we all need to ensure global trade is conducted freely and fairly,” said NAWG President David Schemm, a wheat grower from Sharon Springs, Kan. “Wheat growers will always stand up and applaud when the Administration expands, improves and enforces trade agreements on behalf of farmers.”
 
“Trade enforcement is crucial for building confidence in existing and new trade agreements,” said USW Chairman Mike Miller, a wheat farmer from Ritzville, Wash. “The Trump Administration’s actions should send a signal that strong and enforceable trade rules are vital to the United States and to U.S. farmers, specifically.”

To read more about the dispute panel established in the tariff rate quota case, visit the WTO website at https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds517_e.htm, and the USW website at http://www.uswheat.org/newsRelease/doc/B002A11603AFAC788525808A00574963?Open.

More information about the market price support case is posted online at https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds511_e.htm and at http://www.uswheat.org/newsRelease/doc/8707CB93926092D98525802D0056551C?Open.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.