China scraps “famous brand” subsidies

Posted by Daniel Palmer on 23rd December 2009

The US is claiming victory in a trade dispute with China, after Beijing announced it would scrap so-called “famous brand” subsidies.

China is withdrawing subsidies for products including sugar confectionery, chocolate, fruit jelly, pies, dried noodles, frozen pork, beef and mutton after Washington successfully argued these handouts were export subsidies banned by the World Trade Organisation.

Claiming there have been “dozens” such subsidies, US Trade Representative (USTR) Ron Kirk said he was “very pleased [to have] signed an agreement with China confirming [its] full elimination”.

Chinese documents did not state the value of the subsidies but the USTR office stressed abolition “will level the playing field for American workers”. The move will also apply to other WTO members.

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