China to Eliminate Subsidies for Its Ag, Other Exports

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Agri-Pulse reports: 

China is eliminating a complex web of subsidies the country has been using to boost its exports of agricultural, medical, textile and other goods, U.S. Trade Representative (USTR) Michael Froman announced Thursday. 

“Today we have signed an agreement with China to eliminate export subsidies that the United States challenged because they are prohibited under WTO rules,” Froman said in a press conference, flanked by four House members. 

USTR officials said they calculated that China has spent about $1 billion over the past three years, providing free or discounted services to industrial centers that specialize in exporting and that put U.S. producers and exporters at a disadvantage in the global market. 

China's elimination of the subsidies is particularly good for U.S. farmers and agricultural exporters, Rep. Sam Farr, D-Calif., said. 

“Trade is crucial for the agriculture industry in my California district,” Farr said. “Our growers play by the rules and we expect the same from our trade partners. This administration's strong record of enforcing trade agreements and pushing for even higher standards in future deals ensures that everyone is playing on a level field.” 

Chinese shipments of commodities like garlic are especially damaging to U.S. producers, he said. He noted that his constituents have complained often that you can buy imported Chinese garlic in Gilroy, California — home to the annual Gilroy Garlic Festival and the Miss Gilroy Garlic Beauty Pageant – at lower prices than the domestic product. 

Democratic Reps. Henry Cuellar of Texas, Scott Peters of California and Kurt Schrader of Oregan also attended the press conference to praise the USTR victory. Rep. Suzan DelBene, D-Wash., who was not at the event, said in a statement, “China has illegally subsidized manufacturers and producers across seven economic sectors – several of which directly harm businesses and farms in Washington's First District.” 

But the U.S. win went further than just stopping Chinese export subsidies, Froman said. It shows that the U.S. is capable of enforcing trade rules and provides an example of how the U.S. will make sure that foreign trade partners live up to promises in the 12-country Trans-Pacific Partnership, he explained. 

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Source;  AgriMarketing.com

 

 

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