China – Domestic Support for Agricultural
Producers
Request for Consultations by the united states
The following communication, dated 13 September
2016, from the delegation of the United States to the delegation of China and
to the Chairperson of the Dispute Settlement Body, is circulated in accordance
with Article 4.4 of the DSU.
_______________
My
authorities have instructed me to request consultations with the Government of
the People's Republic of China ("China") pursuant to Articles 1 and 4
of the Understanding on Rules and
Procedures Governing the Settlement of Disputes ("DSU"),
Article 19 of the Agreement on Agriculture ("Agriculture
Agreement"), and Article XXII of the General Agreement on
Tariffs and Trade 1994 ("GATT 1994") with respect to all support
China provides in favor of agricultural producers. China appears to provide domestic support in
excess of its commitment level of "nil" specified in Section I of
Part IV of its Schedule CLII because, for example, China provides domestic
support in excess of its product-specific de minimis
level of 8.5 percent[1] for each of wheat, Indica rice,
Japonica rice, and corn.
The legal instruments through which China provides domestic
support in favor of agricultural producers of wheat, Indica rice, Japonica
rice, and corn include but are not limited to:
·
Communist
Party of China Central Committee and State Council Several Opinions on
Accelerating the Promotion of Agricultural Science and Technology Innovation
and Continuing to Strengthen the Capacity to Guarantee Agricultural Product
Supplies (Communist Party of China Central
Committee, State Council, Zhong Fa [2012] No. 1, issued December 31, 2011)
·
Communist
Party of China Central Committee and State Council Several Opinions on
Accelerating Development of Modern Agriculture and Further Increasing Rural
Development Dynamism (Communist Party of China
Central Committee, State Council, Zhong Fa [2013] No. 1, issued December 31,
2012)
·
Communist
Party of China Central Committee and State Council Publication of "Several
Opinions on Comprehensively Deepening Rural Reform and Accelerating the
Promotion of Agricultural Modernization" (Communist
Party of China Central Committee, State Council, Zhong Fa [2014] No. 1, issued
January 19, 2014)
·
Communist
Party of China Central Committee and State Council Several Opinions on
Strengthening Reform and Innovation and Accelerating Agricultural Modernization
(Communist Party of China Central Committee, State
Council, Zhong Fa [2015] No. 1, issued February 1, 2015)
·
State Council Opinion on Further Deepening Reform of the
Grain Distribution System (State
Council, Guo Fa [2004] No. 17, issued May 23, 2004)
·
Regulation on the Administration of Grain Distribution (Order
of the State Council No. 407, adopted at the 50th executive meeting of the
State Council on May 19, 2004, issued May 26, 2004, first amended July 18,
2013, by Order of the State Council No. 638, further amended on February
6, 2016, by Order of the State Council No. 666)
·
Notice on Raising the Wheat Minimum Purchase Price for 2012 (National Development and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, Fa Gai Dian [2011] No. 250, issued
September 28, 2011)
·
Notice on Issuing the Wheat Minimum Purchase Price
Implementation Plan for 2012 (National
Development and Reform Commission, Ministry of Finance, Ministry of Agriculture, State Administration of
Grain, Agricultural Development Bank of China, China Grain Reserves
Corporation, Fa Gai Jing Mao [2012] No. 1494, issued May 21, 2012)
·
Notice on Raising the Wheat Minimum Purchase Price for 2013 (National Development and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, Fa Gai Jia Ge [2012] No. 3171, issued October 16, 2012)
·
Notice on Issuing the Wheat Minimum Purchase Price
Implementation Plan for 2013 (National
Development and Reform Commission, Ministry of Finance, Ministry of Agriculture, State Administration of
Grain, Agricultural Development Bank of China, China Grain Reserves
Corporation, Fa Gai Jing Mao [2013] No. 947, issued May 20, 2013)
·
Notice on Raising the Wheat Minimum Purchase
Price for 2014 (National
Development and Reform Commission, Ministry of Finance,
Ministry of Agriculture, State Administration of Grain, Agricultural
Development Bank of China, Fa Gai Dian [2013]
No. 205, issued October 12, 2013)
·
Notice on Issuing the Wheat and Early-Season Indica Rice
Minimum Purchase Price Implementation Plan for 2014 (National Development and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, China Grain Reserves Corporation, Fa Gai Jing Mao [2014] No. 1026, issued
May 20, 2014)
·
Notice on Announcing the Wheat Minimum Purchase Price for
2015 (National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain,
Agricultural Development Bank of China, Fa Gai Jia
Ge [2014] No. 2302, issued October 16, 2014)
·
Notice on Issuing the Wheat and Rice Minimum Purchase Price
Implementation Plan for 2015 (National
Development and Reform Commission, Ministry of Finance, Ministry of Agriculture, State Administration of
Grain, Agricultural Development Bank of China, China Grain Reserves
Corporation, Guo Liang Tiao [2015] No. 80, issued May 18, 2015)
·
Notice on Announcing the Wheat Minimum Purchase Price for
2016 (National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain,
Agricultural Development Bank of China, Fa Gai
Jia Ge [2015] No.
2301, issued October 10, 2015)
·
Notice on
Issuing the Wheat and Rice Minimum Purchase Price Implementation Plan (National Development
and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, China Grain Reserves Corporation, Guo Liang Tiao [2016] No. 55, issued
April 5, 2016)
·
National
Development and Reform Commission, State Administration of Grain, Ministry of
Finance, and Agricultural Development Bank of China Notice on Issuing the Xinjiang
Uyghur Autonomous Region National Temporary Reserve Wheat Purchase Plan for 2015 (National
Development and Reform Commission, State Administration of Grain, Ministry of
Finance, Agricultural Development Bank of China, Guo Liang Tiao [2015] No. 93, issued June 6, 2015)
·
Notice on
Raising the Rice Minimum Purchase Prices for 2012 (National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain,
Agricultural Development Bank of China, Fa Gai
Dian [2012] No. 17, issued February 2, 2012)
·
Notice on Issuing the Early-Season Indica Rice Minimum
Purchase Price Implementation Plan for 2012 (National Development and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, China Grain Reserves Corporation, Fa Gai Jing Mao [2012] No. 1943, issued July 2,
2012)
·
Notice on Issuing the Mid- to Late-Season Rice Minimum Purchase Price
Implementation Plan for 2012 (National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain, Agricultural
Development Bank of China, China Grain Reserves Corporation, Fa Gai Jing Mao
[2012] No. 2726, issued August 28, 2012)
·
Notice on
Raising the Rice Minimum Purchase Prices for 2013 (National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain,
Agricultural Development Bank of China, Fa Gai Jia
Ge [2013] No. 193, issued January 30, 2013)
·
Notice on Issuing the Early-Season Indica Rice Minimum
Purchase Price Implementation Plan for 2013 (National Development and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, China Grain Reserves Corporation, Fa Gai Jing Mao [2013] No. 1281, issued July 2,
2013)
·
Notice on Issuing the Mid- to Late-Season Rice Minimum
Purchase Price Implementation Plan for 2013 (National Development and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, China Grain Reserves Corporation, Fa Gai Jing Mao [2013] No. 1836, issued September 18,
2013)
·
Notice on
Raising the Rice Minimum Purchase Prices for 2014 (National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain, Agricultural
Development Bank of China, Fa Gai Dian [2014]
No. 34, issued February 11, 2014)
·
Notice on Issuing the Mid- to Late-Season Rice Minimum
Purchase Price Implementation Plan for 2014 (National Development and Reform Commission, Ministry of Finance, Ministry of
Agriculture, State Administration of Grain, Agricultural Development Bank of
China, China Grain Reserves Corporation, Fa Gai Jing Mao [2014] No. 2104, issued September 15,
2014)
·
Notice on
Announcing the Rice Minimum Purchase Prices for 2015
(National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain,
Agricultural Development Bank of China, Fa Gai Jia
Ge [2015] No. 225, issued February 3, 2015)
·
Notice on
Announcing the Rice Minimum Purchase Prices for 2016
(National Development and
Reform Commission, Ministry
of Finance, Ministry of Agriculture, State Administration of Grain,
Agricultural Development Bank of China, Fa Gai
Jia Ge [2016] No. 223, issued February 2, 2016)
·
Notice
on Proper Handling of Autumn Grains Purchase Work for 2013 (National Development and Reform Commission, Ministry of Finance,
State Administration of Grain, Agricultural Development Bank of
China, Fa Gai Dian [2013] No. 229, issued November 15, 2013)
·
Ministry
of Agriculture Guiding Opinion on Corn Structural Adjustment in the "Sickle"
Regions (Ministry of Agriculture, Nong
Nong Fa [2015] No. 4, issued November 2, 2015)
·
Notice on Issues Relating to National Temporary Reserve
Purchases of Corn for 2012 (State Administration of Grain and Other Departments,
Guo Liang Tiao [2012] No. 212, issued November 15, 2012)[2]
·
Notice on Issues Relating to National Temporary Reserve
Purchases of Corn and Soybeans in the Northeast Region for 2013 (National Development and
Reform Commission, State Administration of Grain, Ministry of Finance,
Agricultural Development Bank of China, Guo Liang Tiao [2013] No. 265, issued
November 22, 2013)[3]
·
Notice on Issues Relating to National Temporary Reserve
Purchases of Corn in the Northeast Region for 2014 (National Development and
Reform Commission, State Administration of Grain, Ministry of Finance,
Agricultural Development Bank of China, Guo Liang Tiao [2014] No. 254, issued November
25, 2014)[4]
·
Notice on Issues Relating to National Temporary Reserve
Purchases of Corn in the Northeast Region for 2015 (National Development and
Reform Commission, State Administration of Grain, Ministry of Finance,
Agricultural Development Bank of China, Guo Liang Tiao [2015] No. 169, issued
September 17, 2015)[5]
as well as any amendments, or related,
successor, replacement, or implementing measures.
China provides domestic support to agricultural producers that appears to be
inconsistent with China's obligations pursuant to Articles 3.2, 6.3, and 7.2(b)
of the Agriculture Agreement because the level of domestic support provided
exceeds China's commitment level of "nil" specified in Section I of Part IV of China's Schedule CLII. In particular, China's domestic support in
favor of agricultural producers, expressed in terms of its current Total
Aggregate Measurement of Support ("Total AMS"),_[6]
appears to exceed China's final bound commitment level in 2012, 2013, 2014, and
2015 on the basis of domestic support provided to producers of,
, wheat, Indica rice, Japonica rice, and corn. In
each of these years, China appears to provide domestic support in