The US has questioned the legality of China’s tax, subsidy and export rules for farm products such as pork and wheat, AP reported. In a letter dated August 13 but posted yesterday on the World Trade Organization (WTO) website, the US took issue with articles of China’s business law, arguing that loopholes exempted processors of pork from taxes. The US also questioned subsidies of US$14.63 given on every sow, asking for clearer details of the subsidy program. The US also suggested that China was doling out US$2.2 billion each year in premiums for Chinese pork producers. Most previous disputes between the US and China have focused on manufacturing and services. But an argument over emergency tariffs on farm imports were responsible for scuttling the WTO trade talks known as the Doha Round.
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