Research On The Expiry Of The Peace Clause And The Countermeasures Of China

The Peace Clause (the article of Agricultural Agreement) is contained in Agreement of Agriculture at the end of Uruguay Round .Its existence balances the relationship of application between Agreement of Agriculture and the general subsidy rules in WTO framework .It protects WTO members'rights of using agricultural subsidy exempt from WTO general subsidy rules to some extent. That is because the Peace Clause ---the only article stipulating relief measures in Agreement of Agriculture. It protects WTO members'rights of using agricultural subsidy exempt from WTO general subsidy rules to some extent by restricting WTO members'procedural rights. Therefore, The Peace Clause have reduced agricultural disputes by exert restraint duties on WTO members.However, the implementation period of the Peace Clause has nine years according to the article 1(f) of Agreement of Agriculture. That means that the Peace Clause can only go to December 31, 2003. If the Peace Clause can not be extended during Doha Round, it will be expired forever. So, the expiry of the Peace Clause affects the effectiveness of Agreement of Agriculture, and all kinds of agricultural subsidies stipulated in Agreement of Agriculture. The possibility of agricultural subsidies conformed fully to Agreement of Agriculture limited by relief measures is still hardly noticeable because Agreement of Agriculture is prior to WTO general subsidy rules and it is difficult to succeed in challenging the subsidy used by other members.China, as a member of WTO, is a large agricultural country .China should claim that the Peace Clause has expired forever. Moreover, there are a lot of questions in legislation and enforcement of agricultural subsidy of China. With the strength of WTO agricultural rules, China should reinforce and improve the legislation of agricultural subsidy in accord with WTO rules in order to protect the agriculture and farmers of China.