By Jessica Domel
Multimedia Reporter
The World Trade Organization (WTO) will look into accusations China’s trade policies are inconsistent with WTO rules and are cutting short opportunities for American farmers to sell rice, corn and wheat to the country.
On Sept. 22, the United States formally asked the WTO Dispute Settlement Body (DSB) to establish a panel to investigate the claims. This was the second request by the U.S. for a panel on this issue. China blocked a request made in early September.
At the time, Chinese officials told the DSB it regretted the U.S.’ action and didn’t believe the panel was the best way to solve the issue.
The dispute began in late 2016 under President Barack Obama. Then-U.S. Trade Representative Michael Froman said China’s tariff rate quotas (TRQs) limit opportunity for U.S. farmers to export competitively-priced, high-quality grains to customers in China.
The challenge claims China doesn’t administer its TRQs on a transparent, predictable or fair basis, nor do they use clearly specified procedures or requirements.
Now that a panel has been called a second time, the U.S.’ call cannot be blocked unless all voting members of the WTO agree to do so.
The panel is established, but has not yet been composed.
According to the WTO, the panel set up and appointment of panelists typically takes 45 days.
The entire process, without appeal, can take up to a year.
Australia, Brazil, Canada, Ecuador, the European Union, Guatemala, Indonesia, Japan, Kazakhstan, Korea, Norway, the Russian Federation, Singapore, Chinese Taipei and Vietnam joined the dispute as third parties.
The dispute is one of more than 20 challenges the United States has brought against China since the republic joined the WTO in 2001.