China Asks for Dispute Panel against India
Subsidies on E-Vehicles
At a meeting of the Dispute Settlement Body
(DSB) on 27 January, WTO members considered a request from China for the establishment
of a dispute panel to review certain Indian measures in the automotive and renewable
energy sectors, which include incentives for the production of advanced chemistry
cell batteries, automobile and auto components, and electric vehicles in India.
India–China Dispute (DS642)
·
China’s Request: Asked for a WTO dispute panel to examine Indian measures in automotive
and renewable energy sectors (batteries, auto components, EVs).
·
Allegation: India’s incentives are tied to domestic goods, discriminating against Chinese-origin
products.
·
Consultations: Held on 25 Nov 2025 and 6 Jan 2026 but failed to resolve.
·
India’s Response: Engaged in good faith, but said China’s understanding of facts is inaccurate;
rejected panel request.
·
Outcome: DSB noted statements; matter may be revisited.
Colombia – Frozen Fries Case (DS591)
·
Colombia reported progress on compliance with WTO rulings regarding anti-dumping
duties on frozen fries from EU countries.
·
Target compliance date: March 2026.
·
EU welcomed update; issue remains under DSB surveillance.
Appellate Body Appointments
·
Colombia (on behalf of 130 members) reintroduced proposal to restart selection
for Appellate Body vacancies — 94th attempt.
·
U.S. maintained opposition, citing unresolved concerns.
·
Many members reiterated support for restoring full dispute settlement; some
urged joining the MPIA as interim solution.
Surveillance of Implementation
·
EU presented status reports on palm oil biofuels (DS600) and biotech products
(DS291).
·
U.S. presented reports on hot-rolled steel (DS184), copyright law (DS160), washers
(DS464), and anti-dumping methodologies (DS471).
·
Indonesia reported on horticultural imports disputes (DS477, DS478).
Next Meeting
·
Scheduled for 24 February 2026.
In short: The DSB meeting centered on China’s request for a panel against India’s EV
and battery incentives, Colombia’s compliance updates, the ongoing deadlock
over Appellate Body appointments, and routine surveillance of dispute implementation.
[ABS News Service/28.01.2026]
China submitted its first request for the establishment of a dispute
panel with respect to certain measures adopted by India that China said ties incentives
in the Indian automotive and renewable energy technology sectors to the use of domestic
goods, or otherwise discriminates against the use of goods of Chinese origin.
China and India held consultations on 25 November 2025 and 6 January
2026 but failed to resolve the dispute, China said, prompting its request for the
panel. China said the measures are trade-restrictive and discriminatory, and violate
India's obligations under WTO agreements. China said the best way to achieve climate
change and renewable energy goals is through collaboration among WTO members. China
said it remains open to working with India to resolve the dispute amicably in accordance
with WTO rules.
India said it engaged with China in good faith during the consultations
with a view to reaching a mutually satisfactory resolution. India said it remains
committed to upholding WTO rules, and that there appeared to be an inaccurate understanding
of the facts. In light of this, India said it is not in a position to accept China's
request for the establishment of a panel.
The DSB took note of the statements and agreed to revert to the matter
if requested by a member.
Colombia reported on its efforts to comply with the rulings and recommendations
in this dispute, stating that it expects to achieve compliance before March 2026,
which is the target of Resolution 318 of 19 November 2025 of the Ministry of Trade,
Industry and Tourism. It said administrative procedures are in their final stage.
The EU thanked Colombia for the update; it noted that the matter remains under DSB
surveillance.
Colombia, speaking on behalf of 130 members, introduced for the 94th
time the group's proposal to start the selection processes for filling vacancies
on the Appellate Body. The extensive number of members submitting the proposal reflects
a common interest in the functioning of the Appellate Body and, more generally,
in the functioning of the WTO's dispute settlement system, Colombia said.
The United States said its fundamental concerns with the dispute settlement
system have not been addressed, and it questioned the value of repeating the agenda
item.
More than 20 members took the floor to comment, one speaking on behalf
of a group of members. Many reiterated their support for restoring a fully functioning
dispute settlement system.
Several members urged others to consider joining the Multi-Party
Interim Appeal Arbitration Arrangement (MPIA), although
one member said the MPIA should not undermine efforts to restore a fully functioning
dispute settlement system.
Colombia, on behalf of the 130 members, said it regretted that for
the 94th occasion members have not been able to launch the selection processes.
Colombia said it will continue to advance the proposal because members did not and
do not consent to the erosion of the dispute settlement system.
The EU presented its status report with regard to DS600 "European Union and Certain Member States - Certain
Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels" and DS291, "European Communities - Measures
Affecting the Approval and Marketing of Biotech Products".
The United States presented status reports with regard to DS184, "United States - Anti-Dumping Measures on
Certain Hot-Rolled Steel Products from Japan", DS160, "United States - Section 110(5) of US Copyright
Act", DS464, "United States - Anti-Dumping
and Countervailing Measures on Large Residential Washers from Korea", and DS471, "United States - Certain Methodologies and
their Application to Anti-Dumping Proceedings Involving China".
Indonesia presented its status reports in DS477 and DS478, "Indonesia
-
Importation of Horticultural Products, Animals and Animal Products".
The next regular DSB meeting will take place on 24 February 2026.