WT/DS517/19  
 
16 July 2021  
(21-5635) Page: 1/1 
  Original: English  
 
CHINA – TARIFF RATE QUOTAS FOR CERTAIN AGRICULTURAL PRODUCTS  
RECOURSE TO ARTICLE 22.2 OF THE DSU BY THE UNITED STATES  
The following communication, dated  15 July 2021 , from the delegation of the United States  to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.  
 
_______________  
 
 
The United States considers that China has failed to implement the recommendations of the Dispute 
Settlement Body ( "DSB") in the dispute China — Tariff Rate Quotas for Certain Agricultural Products  
(DS517). Pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes  ("DSU"), the United States requests authorization from the DSB  to suspend 
concessions or other obligations with respect to China at an annual level based on the level of the 
nullification or impairment of benefits accruing to the United States under the covered agreements 
from the failure of China to implement the re commendations of the DSB. Each year, the United 
States would suspend concessions or other obligations equivalent to the level of nullification or 
impairment through a formula that relates to the value of the unfilled portion of any tariff -rate quota 
(TRQ) for wheat, rice, or corn, as set out in China 's WTO Schedule. The value prescribed by this 
formula will be updated annually according to the most recent calendar year data.  
On May 28, 2019, the DSB adopted the panel report contained in WT/DS517/R , finding that China 's 
administration of TRQs for wheat, rice, and corn was inconsistent with its obligations to administer 
TRQs on a transparent, predictable, and fair basis, using clearly specified requirements and 
administrative procedures, and in a manner that w ould not inhibit the filling of each TRQ under 
Paragraph 116 of China 's Working Party Report ,1 as incorporated into the WTO Agreement2 pursuant 
to Paragraph 1.2 of China 's Accession Protocol .3 Accordingly, the DSB recommended that China bring 
its inconsistent measures into conformity with its WTO obligations . 
The United States and China agreed that the reasonable period of time for China to implement the 
DSB's recommendations would expire on June 29, 2021.  In the view of the United States, China 
failed to bring its measures into compliance with its WTO obligations within that period.  The parties 
have not reached agreement on compensation. Therefore, the United States is entitled to 
authorization by the DSB to take countermeasures under Article 22 of  the DSU.  
In considering what countermeasures to take, the United States follows the principles and 
procedures set forth in Article 22.3 of the DSU. The countermeasures would include suspension of 
concessions or other obligations (including most -favored -nation oblig ations) under the General 
Agreement on Tariffs and Trade 1994  or other agreements listed in Annex 1A of the WTO Agreement 
on a list of products of China to be drawn from the Harmonized Tariff Schedule of the United States.  
We request that you circulate thi s request to the Members of the DSB.  
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1 Report of the Working Party on the Accession of China , WT/ACC/CHN/49 (October 1, 2001).  
2 Marrakesh Agreement Establishing the World Trade Organization.  
3 Protocol on the Accession of the People’s Republic of China , WT/L/432 (November 23, 2001).