CHINA – DOMESTIC SUPPORT FOR AGRICULTURAL PRODUCERS REQUEST FOR CONSULTATIONS BY THE UNITED STATES
Document: REQUEST FOR CONSULTATIONS BY
Date: 20 September 2016
Document codes: WT/DS511/1; G/AG/GEN/135; G/L/1150
Complainant: U.S.
Respondent: China
Third parties: Australia, Brazil, Canada, Colombia, Ecuador, Egypt, El Salvador, EU, Guatemala, India, Indonesia, Israel, Japan, Kazakhstan, South Korea, Norway, Pakistan, Paraguay, Philippines, Russia, Saudi Arabia, Singapore, Taiwan, Thailand, Turkey, Ukraine, Vietnam
Dispute stage: Panel
Agreements cited: Art. 3.2, 6.3, 7.2(b)  Agriculture

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 Disp ute 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 percent1 for each of wheat, Indica
rice, Japonica rice, and corn.

The legal instrume nts 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 G uarantee 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 o f 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)

1 As specified in China's Protocol on the Accession of the People's Republic of China (WT/L/432)
("Accession Protocol "), Part I, paragraph 1.2 (incorporating commitments referenced in paragraph 342 of
China's Working Party Report, including paragraph 235).
WT/DS511/1 • G/AG/GEN/135 • G/L/1150

 State Coun cil 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 W heat 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 201 3 (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 Admi nistration 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 Comm ission, 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 201 5 (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, Ag ricultural 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)
WT/DS511/1 • G/AG/GEN/135 • G/L/1150

 National Development and Reform C ommission, 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 Commi ssion, 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 Price s 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 Price s 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 Refo rm 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 Corporati on, Fa Gai Jing Mao [2013] No. 1836, issued
September 18, 2013)

 Notice on Raising the Rice Minimum Purchase Price s for 2014 (National Development
and Reform Commission, Ministry of Finance, Ministry of Agriculture , State
Administration of Grain, Agricultu ral 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 Price s 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)
WT/DS511/1 • G/AG/GEN/135 • G/L/1150

 Notice on Proper Hand ling 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 Agricul ture 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 Agricultu re 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

2 Including provincial level measures that implement the National Temporary Reserve Purchases for
Corn in the Northeast Region, such as the Notice on Proper Handling of National Temporary Reserve Corn
Purchases Work for 2012 (Jilin Provincial Grain Administration, Agricultural Development Bank of China Jilin
Branch, China Grain Reserves Corporation Jilin Branch, Ji Liang Tiao Lian [2012] No. 127, issued November 16,
2012), and Heilongjiang Province Not ice on Issuing the "Heilongjiang Outline for Promoting the National
Temporary Reserve Soybean and Corn Purchase Policy for 2012 " (Heilongjiang Province Grain Bureau, China
Grain Reserves Corporation Heilongjiang Branch, Agricultural Development Bank of Chi na Heilongjiang Branch,
Hei Liang Nong Lian [2012] No. 112, issued November 13, 2012).
3 Including provincial level measures that implement the National Temporary Reserve Purchases for
Corn in the Northeast Region, such as the Notice on Proper Handling of Issues Relating to National Temporary
Reserve Purchases of Corn and Soybeans for 2013 (China Grain Reserves Corporation Heilongjiang Branch,
China Grain Reserves Beifang Nongye Kaife Corporation, Heilongjiang Province Grain Bureau, Agricultural
Development Bank of China Heilongjiang Branch, Zhong Chu Liang Hei [2013] No. 249, issued November 25,
2013).
4 Including provincial level measures that implement the National Temporary Reserve Purchases for
Corn in the Northeast Region, such as the Notice on Proper Handling of National Temporary Reserve Corn
Purchase Work for 2014 (Jilin Province Grain Bureau, China Grain Reserves Corporation Jilin Branch,
Agricultural Development Bank of China Jilin Branch, Zhong Chu Liang Ji Lian [2014] No. 211, issued
December 16, 2014) and Notice on Issues Relating to Proper Handling of National Temporary Reserve
Purchases of Corn for 2014 (China Grain Reserves Corporation Heilongjiang Branch, Heilongjiang Province
Grain Bureau, China Grain Reserves Beifang Nongye Kaifa Corporation, Agricultural Development Bank of China
Heilongjiang Branch, Zhong Chu Liang Hei [2014] No. 353, issued December 17, 2014).
5 Including provincial level measures that implement the National Temporary Reserve Purchases for
Corn in the Northeast Region, such as the Notice on Proper Handling of National Temporary Reserve Corn
Purchase Work for 2015 (Jilin Province Grain Bureau, China Grain Reserves Corporation Jilin Branch,
Agricultural Development Bank of China Jilin Branch, Zhong Chu Liang Ji Lian [2015] N o. 198, issued October
30, 2015) and Notice on Proper Handling of National Temporary Reserve Corn Purchase Work for 2015 (China
Grain Reserves Corporation Heilongjiang Branch, China Grain Reserves Beifang Nongye Kaifa Corporation,
Heilongjiang Province Grain Bureau, Agricultural Development Bank of China Heilongjiang Branch, Zhong Chu
Liang Hei [2015] No. 399, issued October 30, 2015).
WT/DS511/1 • G/AG/GEN/135 • G/L/1150

agricultural producers, expressed in term s 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, inter alia , wheat, Indica rice,
Japonica rice, and corn. In each of these years, China appears to provide domestic support in
excess of its product-specific de minimis level of 8.5 percent for each product.

 We look forward to receiving your reply to the present request and to scheduling a mutually
convenient date for consultations.

Agreement, and paragraph 235 of the Working Party Report as incorporated into China's Accession Protocol,
pursuant to Part I, paragraph 1.2.