US files WTO complaint against China over grain import restrictions

The US government on Wednesday announced it was taking aim against illegal Chinese restrictions on imports of American grain, as well as price supports China provides for domestic farmers.

In what it says is the 15th challenge against China, and the second involving agriculture this year, the US Trade Representative said it filed a dispute in the World Trade Organization charging China has violated its commitments by limiting imports of American rice, wheat and corn.

USTR said it also is taking the next step in the complaint filed in September that China provides US$100 billion in excess price support for local farmers. It requested the WTO establish a panel to rule on the case, after consultations failed to resolve the matter.

The cases add further fuel to the US argument that China has not yet graduated to the status of a market economy, something Beijing insists should have been automatic as of December 11, 15 years after it joined the global trade body.

That status would make it harder for Washington to impose tariffs on Chinese goods at the request of US companies.