China has formally requested the establishment of a World Trade Organization (WTO) dispute panel to examine the European Union's imposition of countervailing duties on new battery electric vehicles from China. This move follows unsuccessful consultations between China and the EU in December 2024 aimed at resolving the issue.
China expressed concerns about the process that led to these duties, arguing it was inconsistent with WTO agreements. "WTO members have the legitimate right to adopt trade remedy measures," China stated, but emphasized that such rights must adhere to WTO rules.
The European Union expressed regret over China's decision, asserting that it had provided necessary clarifications during consultations. The EU maintains its stance that the imposed measures comply with WTO regulations and is not prepared to accept the formation of a dispute panel at this time.
The Dispute Settlement Body (DSB) acknowledged both parties' statements and agreed to revisit the matter if requested by any member.
In another development, concerning DS593, related to palm oil and biofuels, the EU committed to aligning its measures with WTO rulings but stated it required additional time for compliance. Indonesia stressed the importance of timely implementation and encouraged discussions on a reasonable timeframe.
Regarding DS597, involving US origin marking requirements for Hong Kong products, tensions continued as the United States cited national security concerns while Hong Kong criticized what it viewed as political posturing. China reiterated its position against including this item on the DSB agenda.
Colombia introduced a proposal on behalf of 130 members for initiating Appellate Body appointments. The United States opposed this proposal, citing ongoing concerns about WTO dispute settlement processes and advocating for fundamental reforms.
Multiple members voiced support for restoring a fully functional dispute settlement system and urged participation in interim appeal arrangements due to Appellate Body vacancies. Colombia expressed disappointment over stalled selection processes despite ongoing reform discussions.
Additionally, status reports were presented by various nations regarding existing disputes involving anti-dumping measures and importation issues.
The next regular meeting of the DSB is scheduled for April 25, 2025.