December 23, 2009

China agrees to abolish subsidies for "famous brand" products

The US emerged triumphant in a trade dispute with China, after Beijing announced it would eliminate "famous brand" subsidies.

China is withdrawing subsidies for products including frozen pork, beef and mutton after Washington successfully argued these handouts were export subsidies banned by the World Trade Organisation.

US Trade Representative (USTR) Ron Kirk said he was very pleased to have signed an agreement with China confirming the full elimination of such subsidies.

China 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.