At a Sept. 28 meeting of the World Trade Organization’s (WTO) Dispute Settlement Body (DSB), WTO-member countries approved establishment of a dispute panel at the request of China to determine whether it has complied with an earlier WTO ruling in favor of the United States that successfully challenged China’s subsidies to its wheat and rice producers.
China’s first request was blocked at a previous DSB meeting on Aug. 28.
In its appeal, China maintained that it has adopted measures on minimum procurement prices for wheat and rice that have brought it into compliance with the WTO panel ruling. Meanwhile, the United Stated disagreed with various assertions by China, stating that China continues to provide significant levels of domestic support to its agricultural producers, and the revised market price support measures notified to the WTO by China in June did not demonstrate that China now provides a level of domestic support compliant with its WTO-commitment levels. The United States also reiterated that it has paused the arbitration proceedings at its request for the right to retaliate and understands that China is not seeking further litigation but is requesting the compliance panel to preserve its rights for further consideration of the case.
The DSB agreed to the establishment of a panel. The Russia Federation, Chinese Taipei, Turkey, Norway, Pakistan, Thailand, the European Union, India, Korea, Japan, Canada, Brazil, Australia and Guatemala reserved their rights to participate as third parties in the proceedings.