US claim on farm goods morally untenable

On Sept 13, the United States initiated WTO dispute proceedings against China, claiming that Beijing had provided support for farmers in excess of its commitment to the World Trade Organization. Among the crops in contention are wheat, Indica rice, Japonica rice, and corn.

The US is the largest exporter of agricultural products and grows many of these mainly for exports. In contrast, China is the largest importer of farm products, with its agriculture characterized by small-scale production and subsistence farming. In other words, the conflict is between the US' large commercial farmers and China's smallholding farmers.

After China opened up its agricultural market following its entry into the WTO, the US flooded it with its exports, harming small farmers. The increase in the exports of US farm products to China - from less than $2.8 billion to $28.8 billion at its peak - gives an idea of the harm caused. China's average trade deficit in relation to US farm products is $20 billion a year, and it is the largest export market for US farm products.