WTO Members Consider
Chinas Request for Panel to Examine Electric Vehicle Measures in Türkiye
·
DS629:
Türkiye Measures Concerning Electric Vehicles and
Other Types of Vehicles from China
·
DS597:
United States Origin Marking Requirement (Hong Kong, China)
·
Appellate
Body Appointments
·
Surveillance
of Implementation
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 measures
adopted by Türkiye concerning electric vehicles and certain
other types of vehicles originating in China. Australia also noted to members that
it has fully implemented a panel report regarding anti-dumping and countervailing
duty measures on certain products from China.
DS629:
Türkiye Measures Concerning Electric Vehicles and Other
Types of Vehicles from China
China
submitted a request for the establishment of a dispute panel to rule on various
measures taken by Türkiye concerning electric vehicles
("EVs") and certain other types of vehicles originating in China. Consultations
took place on 20-21 November in an effort to resolve the dispute but failed to produce
a mutually agreed solution, prompting China to submit its request for the panel.
China
said Türkiye's measures are protectionist and discriminatory,
and violate Türkiye's core obligations under the WTO agreements,
including most favoured nation treatment, tariff bindings, and general elimination
of quantitative restrictions. China expressed grave concerns that some members,
including Türkiye, have introduced restrictive measures
on Chinese new energy products, including EVs, which are inconsistent with WTO rules.
Increased tech protectionism is not a solution, China said, adding that the panel
request is one of the responses to such unlawful measures.
Türkiye said the two sides had constructive consultations
in November 2024 and that it shared information and clarifications with its Chinese
colleagues in a cooperative manner. Türkiye said its measures
are completely justified against the backdrop of the strong challenges its automotive
industry has been facing for many years due to anti-competitive practices, subsidization,
and excess capacity. These problems should be addressed in the relevant WTO bodies
for a level playing field in industrial sectors. Against that background, Türkiye said it cannot at this time agree to the establishment
of a panel.
The
DSB took note of the statements and agreed to revert to this matter should the requesting
member wish to do so.
DS597:
United States Origin Marking Requirement (Hong Kong, China)
The
United States once again raised the matter of the panel ruling in DS597 at the DSB
meeting. The US said it was raising the matter as a result of recent developments
in Hong Kong, China regarding free speech and human rights. The US referred back to its previous statements
regarding its position on essential security and its reasons for placing this item
on the DSB agenda.
Hong
Kong, China said the US again raising this matter and questioning its inherent rights
under international law was an abuse of WTO rules. The panel ruling clearly confirms
that the US action lacks legal justification, Hong Kong, China said, adding that
it stands ready to proceed through the due process of appeal should the US lift
its blockage on the appointment of Appellate Body members.
China
reiterated its objections to the item being on the DSB agenda and said any member,
regardless of its power and size, should refrain from taking unilateral and protectionism
measures in the name of national security or using it as a vehicle to disregard
the core principles of the WTO and interfere in other members' internal affairs.
Appellate
Body Appointments
Colombia,
speaking on behalf of 130 members, introduced for the 83rd 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 noted that a new US President was inaugurated on 20 January, and the
US is currently transitioning to a new Administration. Members are aware of the longstanding US concerns
with WTO dispute settlement that have persisted across US administrations; those
concerns remain unaddressed and it does not support the proposed decision, the United
States said.
Twenty
members then took the floor to comment. Most reiterated their support for the joint
proposal and for the urgent need to restore a fully functioning dispute settlement
system as soon as possible. Many welcomed the progress made in the dispute settlement
reform discussions to date and the proposal by the General Council Chair to initiate
consultations with interested delegations to hear views on how to build on progress
made in a manner that would further advance dispute settlement reform work.
Several
members said they looked forward to hearing from the Chair on how those consultations
would be organized. Ten members urged others
to consider joining the Multi-party interim appeal arrangement
(MPIA), a contingent measure to safeguard the right to appeal in the absence of
a functioning Appellate Body.
Colombia
said on behalf of the 130 members it regretted that for the 83rd occasion members
have not been able to launch the selection processes. Ongoing conversations about
reform of the dispute settlement system should not prevent the Appellate Body from
continuing to operate fully, and members shall comply with their obligation under
the Dispute Settlement Understanding to fill the vacancies as they arise, Colombia
said for the group.
Surveillance
of Implementation
Australia
presented a status report regarding its implementation of the panel ruling in the
case brought by China in DS603, "Australia Anti-Dumping and Countervailing
Duty Measures on Certain Products from China." Australia said it provided a written status report
in this dispute on 16 January noting that Australia has fully implemented the ruling
and that the matter is now resolved.
China
thanked Australia for its statement and said this case demonstrates the effectiveness
of the WTO dispute settlement system. At a time when the multilateral trading system
faces unprecedented challenges, cooperation among members is vital to maintaining
the effective operation of the dispute settlement mechanism, China said. China added that it is ready to work with Australia
and other members to continue to resolve trade frictions under the WTO framework.
The
United States presented status reports with regard to DS184, "US 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."
The
European Union presented a status report with regard to DS291, "EC Measures
Affecting the Approval and Marketing of Biotech Products."
Indonesia
presented its status reports in DS477 and DS478, "Indonesia Importation of
Horticultural Products, Animals and Animal Products."
Next
meeting
The
next regular DSB meeting will take place on 24 February 2025.