Will WTO Approve USDA’s Plan?

"This administration will not stand by as our hard-working agricultural producers bare the brunt of unfriendly and illegal tariffs,” said Ag Secretary Sonny Perdue on Tuesday.

Those comments made as the USDA unveiled a $12 billion program to compensate farmers impacted by retaliatory tariffs by China.  Much of the funding will go to direct payments to producers, which raises a question about whether this would take payments above what is allowed under World Trade Organization rules.

"As we've looked at these programs and at our numbers, we should be below our ceiling for trade-distorting domestic support,” said Trade Counsel Jason Hafmeister.  “That's a $19.1B ceiling, right now we're running at less than $5B, so I think we are in pretty good shape in keeping this within the rules."]

Under Secretary of Agriculture Greg Ibach said the aid package shows the world.

“Negotiations for trade deals that are fair, that would end the tariffs and expand markets for U.S. Ag products.”