U.S. Challenges Thailand Over Rice Subsidies

By CnAgri Print

The United States will challenge Thailand over its rice subsidies at a World Trade Organization committee meeting next week, fearful that a government-sponsored crop could land up on the world market and depress prices, hurting U.S. exporters. Reuters reports that Thailand's purchases of rice at high prices are expected to raise output but they have also been blamed for a slump in rice exports, threatening to dethrone Thailand as the top exporter in favour of India or Vietnam.

Thailand has said it is determined to remain the top exporter, causing the USA Rice Federation to worry that the stocks bought by the government will be released onto the world market at a loss.

The U.S. rice industry group has urged the U.S. Trade Representative to take action against the Thai scheme, alleging that it acts as an export subsidy prohibited by the WTO.

The United States has asked Thailand to give answers at the WTO's agriculture committee on Nov 14, according to an advance copy of questions seen by Reuters.

It also asks for details of the rice purchasing scheme and Thai government rice stocks and sales, and asks why the Thai Board of Trade has stopped publishing daily data on the scheme.

The United States said WTO members with an interest had invited Thailand to discuss its policies at an informal meeting before the committee convenes on Wednesday.