IDAHO WHEAT COMMISSION

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Cracking open China's wheat import quota

As the world’s largest wheat market, China accounted for an estimated 19 percent of the world’s wheat consumption in marketing year 2020/21 (July–June). That’s more than the European Union’s 15-percent share, and far ahead of the 4-percent U.S. share (see chart below). To meet demand for a population of more than 1.4 billion, China imports wheat, but at a volume less than half of what is allowed under a quota system first established when China joined the World Trade Organization (WTO) in 2001. A study by USDA’s Economic Research Service (ERS) looked at China’s past procedures for allocating quotas to its prospective importers and revealed that, based on the application rates for wheat quotas, demand for imported wheat often exceeded what was typically awarded.