China pushes for EU dispute panel over EV duties

China pushes for EU dispute panel over EV duties
Trade
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Yi Xiaozhun Deputy Director-General | World Trade Organization

China is moving forward with its request for a dispute panel to evaluate the EU's countervailing duties on electric vehicles originating from China. This marks China's second request, following the EU's refusal to entertain the initial request at a meeting in March. China argues the EU's actions conflict with World Trade Organization (WTO) rules, expressing willingness for dialogue to resolve the issue according to WTO guidelines. In response, the EU insists its measures are defensible and expects to prevail in the dispute. The Dispute Settlement Body (DSB) has approved the establishment of the panel. Countries including the United States, Canada, and Japan have reserved rights to participate as third parties in the proceedings.

The United States has reiterated concerns at the DSB regarding the DS597 panel ruling related to its marking requirements for Hong Kong. This follows continued developments regarding freedom of speech and human rights in Hong Kong, which the US referenced while discussing its stance on national security concerns. Hong Kong has expressed disappointment over the US's continued attention to this matter, asserting the panel provided an unbiased assessment. China also voiced apprehension about the issue being revisited, citing the panel's conclusions on the security exception under the General Agreement on Tariffs and Trade (GATT) 1994.

In the DS588 dispute involving Indian tariffs on certain high-tech goods, India and Chinese Taipei are pursuing further dialogue toward resolution. They have requested more time for consideration of a WTO panel report, aiming to reschedule the adoption to late October 2025. The DSB has accommodated multiple previous delays at the request of the parties involved.

On the subject of the Appellate Body, Colombia represented a group of 130 members advocating for the initiation of the selection process to fill vacancies. The US remains unsupportive of the proposal, citing ongoing concerns with the WTO's dispute settlement mechanism. The US emphasizes the need for substantial reform in the dispute process. Over 20 members contributed to the discussion, with some urging involvement in the Multi-party Interim Appeal Arrangement to maintain the right to appeal despite the Appellate Body's vacancy.

The Plenary was briefed on various implementations and status reports, including US measures on steel products, the copyright act, and washing machines, as well as the EU's biotechnology product regulations and Indonesia’s importation measures.

The next regular DSB meeting is scheduled for May 23, 2025.