China – Domestic Support for Agricultural Producers

Status Report regarding implementation of the
dsb recommendations and rulings
by China

Addendum

The following communication, dated 18 June 2020, from the delegation of China to the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 21.6 of the DSU.

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China submits this report in accordance with Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

At its meeting on 26 April 2019, the Dispute Settlement Body ("DSB") adopted the Panel Report in China –Domestic Support for Agricultural Producers (WT/DS511).  On 16 May 2019, China informed the DSB and later reconfirmed at the DSB meeting of its intention to implement the recommendations and rulings of the DSB in connection with this matter.  On 10 June 2019, China and the United States informed the DSB that they had agreed that the reasonable period of time for China to implement the DSB's recommendations and rulings was set to expire on 31 March 2020.  On 1 April 2020, China and the United States agreed to extend the reasonable period of time to 30 June 2020 to allow the United States additional time to evaluate China's actions.

The National Development and Reform Commission, the National Food and Strategic Reserves Administration, the Ministry of Finance, the Ministry of Agriculture and Rural Affairs and the Agricultural Development Bank of China jointly promulgated the Notice on Announcing the Minimum Procurement Price for Wheat for 2020 (Fa Gai Jia Ge [2019] No. 1617) and the Notice on Improving the Wheat Minimum Procurement Price Policy (Guo Liang Liang [2019] No.284) on 12 October 2019, and the Notice on Announcing the Minimum Procurement Price for Rice for 2020 (Fa Gai Jia Ge [2020] No.290) and the Notice on Improving the Rice Minimum Procurement Price Policy (Guo Liang Liang [2020] No.41) on 28 February 2020.

The Minimum Procurement Price ("MPP") policies maintained under the Notice on Improving the Wheat Minimum Procurement Price Policy and the Notice on Improving the Rice Minimum Procurement Price Policy are consistent with the recommendations and rulings of the DSB in DS511 and the WTO covered agreement.

As set forth in these two measures regarding the MPP policy for wheat and rice, starting from 2020, maximum procurement amounts under the MPP shall be fixed each year, and the amount of production that is eligible to receive the minimum procurement price shall be limited to the maximum procurement amount. The procurement progress is required to be monitored and published regularly, and in no event shall the actual procurement amount exceed the maximum procurement amount fixed each year.

Through the abovementioned measures, China had fully implemented the recommendations and rulings of the DSB in this matter.