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Big Win For U.S. Wheat Growers As WTO Finally Cracks Down On Chinese Government Subsidies

The exciting announcement this week about the World Trade Organization ruling in favor of the U.S. that the Chinese are internally subsidizing their rice and wheat markets above levels that are acceptable for the WTO agreement has many buzzing. NAWG was an instigator in getting this decision made, starting with the previous administration. 
 
In Orlando at the 2019 Commodity Classic, Associate Farm Director Carson Horn asked Chandler Goule, CEO of the National Association of Wheat Growers, what he makes of the findings.
 
“This is a good win for U.S. wheat growers, a good win for the US and we are glad to see the WTO is finally taking a stronger stance against China,” commented Goule.
 
NAWG estimated that the Chinese internal subsidy programs have cost the average U.S. Wheat farmer about $640M per year. Knowing this has been going on for multiple years, means billions of dollars loss.
 
Likely wins will follow in the next rounds of the process; however, there is still an immediate need to maintain international markets like China and Japan. If and when China appeals, final resolution could still be 2-3 years away and there is no clear time frame on when actual change will come.
 
“We’ve sold no wheat to china last year. We haven’t sold any this year. We continue to lose market share in Japan. I don’t know if it will definitely cause a permanent change in the way the Chinese government continues to work with their commodities but this is at least a step in the direction of showing them if they’re going to be a member of the WTO, they’re going to have to abide by their rules,” said Goule.
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