HomeNewsWorldUS challenges $100 bn in China rice, cereal subsidies

US challenges $100 bn in China rice, cereal subsidies

The United States alleges that China doled out USD 100 billion in "market price support" for the grains, above levels agreed at the Geneva-based WTO.

September 14, 2016 / 09:50 IST
Story continues below Advertisement

US President Barack Obama launched legal action against "unfair" Chinese rice, wheat and corn subsidies at the World Trade Organization, setting up a culturally sensitive multi-billion-dollar trade spat.

The United States alleges that China doled out USD 100 billion in "market price support" for the grains, above levels agreed at the Geneva-based WTO.

Story continues below Advertisement

"When other countries flout the rules to try and undercut American workers and farmers, we hold them accountable," Obama said in a statement announcing the action.

China is the world's largest producer of wheat and rice, holding significant sway over world markets.