Dispute Settlement
Geneva: At the meeting of the Dispute Settlement Body (DSB) on August 30, 2021, World Trade Organization (WTO) members agreed to the establishment of a dispute panel to determine whether China complied with an earlier WTO ruling regarding the administration of its tariff rate quotas (TRQs), including those for wheat, rice, and corn.
China had made requests to the WTO to this effect. However, it’s first request was blocked at the July 26, 2021 meeting of the DSB.
China submitted its second request for a dispute panel to determine whether it complied with a 2019 ruling concerning its administration of TRQs for certain agricultural products on August 30, following which the DSB agreed to the establishment of the panel. It reiterated that it had fully implemented the rulings and recommendations of the DSB in this dispute and that, while it was reluctant to request the establishment of a compliance panel, it was doing so as a consequence of the United States decision to request authorization to suspend concessions or other obligations with respect to China under Article 22.2 of the Dispute Settlement Understanding.
It said it was deeply concerned about the systemic implications of the US approach and emphasized that, despite its request for a compliance panel, the burden to prove the WTO-inconsistency of China’s compliance measures remains with the US.
The United States said it did not agree that China had complied with the WTO ruling. It noted that there was a lack of transparency and fairness in China’s administration of TRQ measures. The US further said that it had paused the arbitration of its request to suspend concessions to China, and that it was willing to work with Beijing to reach a resolution.
The DSB agreed to the establishment of a panel. Australia, Brazil, Canada, the European Union, Guatemala, India, Japan, the Russian Federation, Chinese Taipei, and the United Kingdom reserved their rights to participate as third parties in the proceedings.
– global bihari bureau
