[ad_1]
If today Brazil was fighting against US and European subsidies to the agricultural sector, a new international player is strengthening on the international market: China. The data provided by the Chinese to the World Trade Organization (WTO) indicates that the commitments made by Beijing in 2001 when it joined the trading system are ignored and that the support volumes to Chinese producers have largely exceeded the ceiling. determined
. Nearly 20 years ago, it was established that China could provide subsidies that could distort markets to a level not exceeding 8.5% of the value of its total agricultural production. The condition offered to the Chinese was more restrictive than the rules for other emerging countries. In Brazil, for example, subsidies can reach 10%. Already in the United States, Japan or the European Union, the ceiling is set at 5% of the total value of production. But, eager to be transparent, this week released its trade data to the WTO for all subsidies granted between 2011 and 2016.
If rice and wheat production was less than 8 , 5%, it was not the same with soy, sugar or cotton, products that compete directly with Brazilian exports.
In the case of cotton, the subsidy rate exceeded the ceiling for all years between 2011 and 2016. In 2015, support levels reached 29% of the sector's production, more than three times the levels. allowed. In the case of soybeans, they exceeded the five-year limit, with rates of up to 13%.
The negotiators believe that China's admission of exceeding the permissible limit is due to a lawsuit filed by the US government against Beijing and accusing the Asian government of distorting world markets in the agricultural sector.
Dispute
In 2016, the United States opened a dispute in the WTO courts, alleging that the Chinese would have distributed $ 100 billion in subsidies, mainly for corn, wheat and sugar. rice. The US government would be concerned about the production of Chinese overproduction that would affect international commodity prices and displace US exports to third markets.
The complaint was also filed by the Obama administration. But President Donald Trump will celebrate a possible condemnation of the Chinese, a sign that his administration is acting against the distortions promoted by the Chinese in international markets.
The denounced scheme suggests the establishment of minimum prices for certain goods, guaranteed by the Chinese state. One of the US fears is that this subsidy will affect the US's ability to export agricultural products to the Chinese market, with significant local supply and at a more competitive price.
Source link
