China Initiates Dispute Complaint on EU Definitive Anti-subsidy Duties on Electric Vehicles

China has requested WTO dispute consultations with the European Union regarding the EU’s imposition of definitive countervailing duties on new battery electric vehicles (BEVs) from China. The request was circulated to WTO members on 6 November.

China claims the EU's determination that alleged Chinese programmes cited by the EU constitute countervailable subsidies appears to be inconsistent with various provisions of the WTO's Agreement on Subsidies and Countervailing Measures (SCM) and Article VI of the General Agreement on Tariffs and Trade (GATT) 1994. China also claims that the EU acted in a manner inconsistent with various provisions of the SCM Agreement and Article VI of the GATT 1994.

Note: a separate request for consultations with the EU was filed by China on 9 August with respect to the same investigation and the provisional countervailing duties imposed by the EU on imports of BEVs from China (DS626).

What is a request for consultations?

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.