China
– Tariff Rate Quotas
for certain agricultural products
report OF THE PANEL
TABLE OF CONTENTS
1
Introduction.. 11
1.1 Complaint by the United States. 11
1.2 Panel establishment and composition. 11
1.3 Panel proceedings. 11
2 Factual aspects. 12
2.1 Measure at issue. 12
2.2 China's system of TRQ administration
for wheat, rice, and corn. 13
2.2.1 Initial allocation of TRQ amounts. 14
2.2.1.1 Announcement of TRQ amounts
available for allocation. 14
2.2.1.2 Application criteria. 14
2.2.1.3 Application process. 16
2.2.1.4 Allocation principles. 17
2.2.1.5 Public comment process. 17
2.2.2 Rules and requirements for allocated
TRQ amounts. 18
2.2.2.1 STE and non-STE portions of TRQs. 18
2.2.2.2 Usage requirements for wheat,
rice, and corn imported under TRQ allocations. 19
2.2.2.3 Return of unused TRQ amounts and
penalties for their non-use. 19
2.2.3 Reallocation of returned TRQ amounts. 20
3 Parties' requests for findings and
recommendations. 21
4 Arguments of the parties. 21
5 Arguments of the third parties. 21
6 Interim Review... 22
6.1 Factual aspects. 22
6.2 Claims under Paragraph 116 of China's
Working Party Report 22
6.3 Claim under Article XIII:3(b) of the
GATT 1994. 26
6.4 Claim under Article X:3(a) of the GATT
1994. 26
7 Findings. 26
7.1 Claims under Paragraph 116 of China's
Working Party Report 26
7.1.1 Introduction. 26
7.1.2 Legal provision. 27
7.1.3 Horizontal issues. 29
7.1.4 Assessment of the individual aspects
of China's TRQ administration challenged
under Paragraph 116. 31
7.1.4.1 Basic eligibility criteria. 31
7.1.4.1.1 Introduction. 31
7.1.4.1.2 Basic eligibility criteria at
issue. 31
7.1.4.1.3 Main arguments of the parties. 32
7.1.4.1.4 Analysis by the Panel 32
7.1.4.1.5 Conclusion. 36
7.1.4.2 Allocation principles and
reallocation procedures. 36
7.1.4.2.1 Introduction. 36
7.1.4.2.2 Allocation principles and
reallocation procedures at issue. 36
7.1.4.2.3 Main arguments of the parties. 37
7.1.4.2.4 Analysis by the Panel 38
7.1.4.2.4.1 Allocation principles. 38
7.1.4.2.4.2 Reallocation procedures. 41
7.1.4.2.5 Conclusion. 42
7.1.4.3 Public comment process. 42
7.1.4.3.1 Introduction. 42
7.1.4.3.2 Public comment process at issue. 42
7.1.4.3.3 Main arguments of the parties. 43
7.1.4.3.4 Analysis by the Panel 43
7.1.4.3.5 Conclusion. 44
7.1.4.4 STE and non-STE portions of TRQs. 45
7.1.4.4.1 Introduction. 45
7.1.4.4.2 Provisions at issue concerning
STE and non-STE portions of TRQs. 45
7.1.4.4.3 Main arguments of the parties. 45
7.1.4.4.4 Analysis by the Panel 47
7.1.4.4.4.1 Allocation of STE and non-STE
portions of the TRQs. 47
7.1.4.4.4.2 Procedure for non-STE
recipients to import under STE portions of TRQs. 50
7.1.4.4.5 Conclusion. 51
7.1.4.5 Public notice. 51
7.1.4.5.1 Introduction. 51
7.1.4.5.2 Extent of the public notice at
issue. 51
7.1.4.5.3 Main arguments of the parties. 52
7.1.4.5.4 Analysis by the Panel 53
7.1.4.5.5 Conclusion. 55
7.1.4.6 Usage requirements for wheat,
rice, and corn imported under TRQ allocations. 55
7.1.4.6.1 Introduction. 55
7.1.4.6.2 Usage requirements at issue. 56
7.1.4.6.3 Main arguments of the parties. 56
7.1.4.6.4 Analysis by the Panel 57
7.1.4.6.4.1 Usage requirements for wheat
and corn imported under TRQ allocations. 57
7.1.4.6.4.2 Usage requirement for rice
imported under TRQ allocations. 60
7.1.4.6.5 Conclusion. 61
7.1.5 Overall assessment of China's TRQ
administration under Paragraph 116. 62
7.2 Claim under Article XIII:3(b) of the
GATT 1994. 64
7.2.1 Introduction. 64
7.2.2 Legal provision. 64
7.2.3 Main arguments of the parties. 64
7.2.4 Analysis by the Panel 65
7.2.5 Conclusion. 68
7.3 Claim under Article X:3(a) of the GATT
1994. 68
7.3.1 Introduction. 68
7.3.2 Legal provision. 68
7.3.3 Main arguments of the parties. 69
7.3.4 Analysis by the Panel 70
7.4 Claim under Article XI:1 of the GATT
1994. 73
7.4.1 Introduction. 73
7.4.2 Legal provision. 73
7.4.3 Main arguments of the parties. 73
7.4.4 Analysis by the Panel 75
8 Conclusions and recommendations. 76