BEIJING: China has slapped an import duty on an American corn product in retaliation for the US filing a complaint about the Asian nation’s corn and wheat subsidies. It comes 10 days after the US Government filed a complaint with the World Trade Organisation claiming China’s support for domestic wheat, rice and corn growers was in excess of internationally agreed levels.
US officials claim the Chinese Government spent nearly $100 billion more than allowed, under the World Trade Organisation on “market price support” for those agricultural products last year. But Beijing has hit back, and on Friday China slapped a 33.8 per cent duty on imports of US dried distillers grains — a byproduct of corn based ethanol production — citing anti-dumping practices.
China is the world’s top buyer of the corn product which is used to feed livestock, and almost all of the DDSG China imports comes from the United States and the trade was worth about $1.6 billion in the last year. A statement from the US Grains Council said it was “deeply disappointed” the Chinese Ministry of Commerce had determined the DDSG was being dumped and implemented the import duty. “DDGS have not caused any injury to China’s DDGS producers,” the statement said. “Instead, DDGS play an important role in protecting Chinese feed producers and households against unpredictable swings in global commodity prices.”
In filing the case against China at the WTO US officials said the Chinese Government subsidies on wheat, rice and corn hurt American growers. “Unfortunately, China’s price supports have encouraged wheat, corn and rice production in China that has displaced imports,” Agriculture Secretary Tom Vilsack said in a statement. “When China joined the WTO, it committed to limit this kind of trade-distorting support, which it has failed to do.” Since taking office, President Barack Obama has overseen two dozen new trade enforcement actions at the WTO, with 14 of those against China and three against India.