CURRENT AFFAIRS

Detailed explanation-1: -The United States won a World Trade Organization (WTO) ruling on Thursday against China’s use of tariff-rate quotas for rice, wheat and corn, which it successfully argued limited market access for U.S. grain exports.

Detailed explanation-2: -The WTO rules were not written with China, or its unique economic-political structure, in mind. China has elements of a capitalist system, but is still run by a communist government.

Detailed explanation-3: -As part of its commitment in its WTO accession, China opened its market wide to other countries. Its average import tariff rates have been slashed from 19.5 percent in 2001 to 7.4 percent in 2020, a rate approaching the level of the EU and lower than the 9.8 percent it promised at accession.

Detailed explanation-4: -After 20 years of WTO membership, China still embraces a state-led, non-market approach to the economy and trade, despite other WTO members’ expectations – and China’s own representations – that China would transform its economy and pursue the open, market-oriented policies endorsed by the WTO.

Detailed explanation-5: -China has been a member of WTO since 11 December 2001.