The Office of the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) announced Tuesday the U.S. government would file a trade enforcement action at the World Trade Organization (WTO) against China related to domestic support that country provides for the production of corn, wheat and rice. 

The announcement was made at a press conference headlined by USTR Michael Froman and USDA Secretary Tom Vilsack, flanked by the chairs and ranking members of both Congressional agriculture committees and other Members of Congress. 

The U.S. agencies said that in 2015, China’s support for corn, wheat and rice was estimated to be nearly $100 billion in excess of the levels China committed to during its accession to the WTO, inflating Chinese prices above market levels and distorting world grain markets. 

The U.S. Grains Council (USGC) has worked with grain industry participants in China, including the Chinese government, for more than 30 years on a wide range of environmental, policy and feed and livestock industry issues. 

USGC believes in free and open trade and the importance of both strong trade policy and market development, principles that guide its relationship with China, a complex and important trading partner for U.S. agriculture.

USGC also believes the WTO provides structure and accountability for global trade, and that WTO consultations and negotiations like those initiated by USTR and USDA this week are integral parts of the WTO process. 

The organization issued a statement soon after the announcement welcoming the U.S. government’s move on this critical issue and expressing hope it will help support a long-term, stable and mutually-beneficial trading relationship between U.S. grains and ethanol producers and Chinese buyers.

More about the announcements made this week is available from USTR and USDA. The full USGC statement is here.