Green Box Support Measures Under the WTO Agreement on Agriculture and Chinese Agricultural Sustainable Development

The report analyzes the implementation of WTO Agreement on Agriculture (URAA) domestic support rules, specifically the 'Green Box' (minimally trade-distorting) measures. It compares the policies of the US, Japan, and the EU with China's approach, noting that while China relies heavily on Green Box measures for infrastructure and food security, it lacks the financial capacity for decoupled income support. The authors argue that WTO rules are biased toward developed nations and propose reforms to provide developing countries more flexibility and stricter criteria for Green Box exemptions to prevent hidden trade distortions.

• The general trend among WTO Members since 1995 has been to increase the use of Green Box measures while decreasing the use of trade-distorting Amber Box measures.
• Developed nations dominate Green Box spending; between 1995 and 1998, 15 developed Members accounted for 84.2 per cent of total Green Box expenditures, while 40 developing Members accounted for only 15.8 per cent.
• The United States is the largest user of Green Box measures, spending an average of $49,704.5 million annually from 1995 to 1998, with Domestic Food Aid accounting for 72.7 per cent of its Green Box expenditures.
• Japan's Green Box support is heavily focused on Government General Services, which represents 83.7 per cent of its total Green Box support, with infrastructure construction making up 61.5 per cent of those outlays.
• The European Union's Green Box measures represent a relatively small share of its total agricultural support, ranging from 20 to 24 per cent between 1995 and 1998.
• China's Green Box support is primarily centered on infrastructure construction and domestic food reserves, which together account for approximately 60 per cent of its total Green Box measures.
• China has not adopted several key Green Box measures, such as Decoupled Income Support and Income Insurance, due to financial and administrative constraints and the lack of an income registration system.
• China's overall agricultural support is effectively negative because the government levies high agricultural taxes and fees, estimated at RMB 170 billion annually, which offsets Green Box spending.
• WTO accession is expected to cause structural changes in China, including a decline in grain production acreage and a potential loss of 12 to 13.2 million agricultural jobs due to cheap imports.
• The report argues that Green Box measures can still be trade-distorting because they can influence farmers' wealth, expectations, and risks, thereby affecting production decisions.
• The authors propose that the WTO should clarify Green Box definitions, design stricter criteria to prevent the 'switching' of Amber Box support to Green Box, and provide developing countries more flexibility in market access and domestic support.

APA

Yumin, Z., Hongxia, W., & Mayu, L. (2004). Green Box Support Measures Under the WTO Agreement on Agriculture and Chinese Agricultural Sustainable Development. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_greenbox_china.pdf

Chicago

Yumin, Zhao, Wang Hongxia, and Linxuegui Mayu. Green Box Support Measures Under the WTO Agreement on Agriculture and Chinese Agricultural Sustainable Development. International Institute for Sustainable Development, 2004. https://www.iisd.org/system/files/publications/tkn_greenbox_china.pdf.

Wikipedia

{{cite report |last1=Yumin |first1=Zhao |last2=Hongxia |first2=Wang |last3=Mayu |first3=Linxuegui |title=Green Box Support Measures Under the WTO Agreement on Agriculture and Chinese Agricultural Sustainable Development |publisher=International Institute for Sustainable Development |date=May 2004 |url=https://www.iisd.org/system/files/publications/tkn_greenbox_china.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yumin2004green, author = {Yumin, Zhao and Hongxia, Wang and Mayu, Linxuegui}, title = {{Green Box Support Measures Under the WTO Agreement on Agriculture and Chinese Agricultural Sustainable Development}}, institution = {International Institute for Sustainable Development}, year = {2004}, month = may, url = {https://www.iisd.org/system/files/publications/tkn_greenbox_china.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }