China has formally raised a dispute at the World Trade Organization (WTO) regarding certain Indian policies affecting batteries, auto parts, and electric vehicles. According to China, these measures favor domestic over imported products or otherwise discriminate against Chinese goods. China contends that the Indian actions are not in line with commitments under the Agreement on Subsidies and Countervailing Measures, the Agreement on Trade-Related Investment Measures, and the General Agreement on Tariffs and Trade 1994.
"China is of the view the measures are contingent on the use of domestic over imported inputs or are otherwise discriminatory against Chinese products and are inconsistent with various provisions under the Agreement on Subsidies and Countervailing Measures, the Agreement on Trade-Related Investment Measures, and the General Agreement on Tariffs and Trade 1994."
This move initiates WTO’s dispute settlement process. The request for consultations marks the official beginning of a trade dispute at the WTO. These consultations allow both parties to discuss their concerns in an effort to reach an agreement without moving forward to litigation. If no resolution is achieved within 60 days, the complaining country may ask for a panel to adjudicate the matter.
Further details about this case can be found in document WT/DS642/1.
The WTO’s consultation process is designed to give members an opportunity to resolve disputes amicably before any formal legal proceedings begin.