Study On The Case Between The United States And China On Domestic Support For Agricultural Producers

Due to the importance of agriculture to national security,the issue of agricultural subsidies has always been a sensitive topic in negotiations between various countries.Under the framework of WTO,the Agreement on Agriculture is even harder to come by.In order to "establish a fair market-oriented agricultural trade system",WTO members have made binding commitments to agricultural market access,domestic support and export competition after long-term negotiations,with a view to achieving the goal of gradually and significantly reducing agricultural support and protection,and correcting and preventing restrictions and distortions in the world agricultural market.The WTO dispute China-Domestic Support for Agricultural Producers（WT/DS511）which is focused in this thesis is a typical case of WTO members violating their domestic support level commitments under the "Agreement on Agriculture".It is also the first agricultural trade dispute that China has been sued under the WTO framework.As a large agricultural country with a large population,China has all along adopted various domestic support measures in favor of agricultural producers.In this case,the United States filed a request for consultation regarding China’s "single market price support" that exceeded its promised levels of domestic support which in favor of agricultural producers of corn,wheat,japonica rice and indica rice from 2012 to 2015.After the negotiation failed,the United States requested to the WTO Dispute Settlement Body for the establishment of a panel.The Panel released its report on February 28,2019,finding that China’s relevant domestic support measures violated its obligations under Articles 3.2 and 6.3of the Agreement on Agriculture.The report has now been adopted by the dispute settlement body,and China has also sent a letter indicating that it will enforce the recommendation of the Panel.Based on the dispute,this article will summarize the arguments of China and the United States and the legal opinions of the Panel around the two major legal controversies in the case.At the same time,through comparing to other WTO cases involving the "Agreement on Agriculture",this article makes an in-depth legal analysis of this case.Based on the experience and lessons of this case and the current situation of China’s agricultural development,this article explores the relevant enlightenment for the reform of China’s agricultural subsidy policy and the corresponding disputes.The main body of this article consists of four parts.The first part introduces the dispute China-Domestic Support for Agricultural Producers,summarizing the basic background and the development of the dispute.Also summarize the main focuses of controversy.The second part is the analysis of the first major dispute controversy,that is,the dispute over the expiration of China’s domestic support measures concerning corns.This part starts with the introduction of the relevant facts of this controversial point and summarizes the differences between China and the United States in understanding the domestic support measures for corn after China’s reform.Then the author analyzes the Panel’s identification of new domestic support measures for corn after China’s reform,and the Panel’s decision of whether include the new measure in the scope of the review of this case.Finally,the author expounds her own views on the controversial point and the analysis of the Panel.The third part is to analyze the second major dispute point,namely whether China violated its obligations under Articles 3.2 and 6.3 of the Agreement on Agriculture.First of all,this part also starts from the relevant facts involved in the dispute point.Then combining with the analysis of the Panel,this part identifies China’s specific obligation of domestic support for agricultural producers under Articles 3.2 and 6.3 of the Agreement on Agriculture.Moreover,this part focuses on the calculation method of "Aggregate Measurement of Support（AMS）" which is used to assess a country’s actual level of domestic support for agricultural producers.Further explore the calculation of China’s AMS,through exploring China’s Market Price Support（MPS）which is an important constituent of AMS under the Agreement on Agriculture and its three related variables: Applicable Administered Price（AAP）,Quantity of Eligible Production（QEP）and Fixed External Reference Price（FERP）.Comparing China’s calculation method with that recognized by the Panel.Finally,the author evaluates the different calculation methods involved and the different understandings behind them.The fourth part is to summarize the enlightenment of the dispute to China.On the premise of deeply understanding the requirements of the "Agreement on Agriculture" and China’s specific obligations,China should further reform the agricultural subsidy policy,create a fairer agricultural trade environment and avoid agricultural subsidy litigation as far as possible by refining the types of domestic support measures,reasonably matching and applying the "green box","amber box" and "blue box" subsidy measures,and clarifying the market-oriented reform direction.