(Yicai Global) Dec. 16 -- China's Ministry of Commerce (MOC) replied today to a US challenge to China's use of tariff-rate quotas on agricultural products at the World Trade Organization (WTO).
Tariff-rate quotas are a trade administration method China has explicitly retained since it joined the WTO, the ministry advised. China's use of such quotas for wheat, rice and corn is consistent with its WTO commitments and relevant WTO rules.
China regrets that the US has requested consultation with it, but will appropriately handle this based on the WTO's dispute resolution process, the ministry added.
On Dec. 15, the US requested consultation with China over its use of tariff-rate quotas for three agricultural products -- wheat, rice (long grain rice and medium- and short-grain rice), wheat and corn -- under the WTO dispute resolution mechanism, saying that China's administrative measures are at odds with its WTO commitments and relevant provisions of the General Agreement on Tariffs and Trade 1994 (GATT).