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TWN
Info Service on WTO and Trade Issues (Oct24/06) Geneva, 9 Oct (D. Ravi Kanth) — China on 8 October initiated dispute settlement proceedings against Turkiye at the World Trade Organization over Ankara’s decision to impose additional tariffs on imports of electric vehicles (EVs) and certain other passenger vehicles originating in China, a development that suggests China’s continued trust in the WTO’s dispute settlement system even though it currently remains dysfunctional. Beijing filed a complaint against Turkiye under Article 4 of the WTO’s Dispute Settlement Understanding (DSU) challenging Turkiye’s imposition of additional tariffs of 40% on imports of electric vehicles and certain other passenger vehicles originating in China, as well as import permit restrictions. “The discriminatory measure taken by Turkiye is against WTO rules, and is protectionist in nature,” according to a statement issued by China’s Ministry of Commerce. China urged Turkiye “to follow the WTO rules and immediately correct its measures.” China said that it “will defend the legitimate interests of its domestic industry through all means available.” As a first step, under Article 4 of the DSU, Turkiye is required to enter into consultations with China within a period of 30 days after the date of receipt of the request for consultations in order to amicably resolve the concerns raised by the complainant. If consultations fail to settle the dispute within 60 days, or if during the 60 days, the consulting parties jointly consider that the consultations have failed, China, as the complaining party, may request the establishment of a dispute panel. Interestingly, at a time when some Chinese electric vehicle manufacturers are reportedly setting up facilities in Turkiye, Ankara may have been forced to levy the 40% additional tariffs on Chinese electric vehicles, following suit from the European Union. Turkiye and the EU are members of the EU-Turkiye Customs Union, said a legal analyst who asked not to be quoted. Earlier, on 9 August 2024, China initiated dispute settlement proceedings against the EU over its imposition of 35.3% duties on top of the existing 10% provisional countervailing duties on certain new battery electric vehicles originating in China. China said that the EU’s provisional countervailing duties appear to be inconsistent with several provisions of the WTO agreements. China maintained that the EU’s tariffs violated “Article VI of the GATT 1994; and Articles 1, 1.1(a)(1), 1.1(a) (1)(i), 1.1(a)(1)(ii), 1.1(a)(1)(iii), 1.1(b), 2, 2.1, 2.4, 10, 11.2, 11.3, 11.6, 12, 12.1, 12.3, 12.4, 12.5, 12.7, 13, 13.1, 13.4, 14, 15, 15.1, 15.2, 15.4, 15.5, 15.7, 15.8, 16, 16.1, 17, 17.5, 19, 19.1, 19.4, 22, 22.3, 22.4 and 32 of the Subsidies and Countervailing Measures Agreement.” The EU confirmed the provisional countervailing duties on Chinese EVs last week, despite strong opposition from Germany and Hungary. In an apparent tit-for-tat move, China appears to have retaliated against the EU by threatening to impose anti- dumping measures on brandy imports from the EU member states, as well as opening investigations into pork and dairy products, according to a Financial Times report on 8 October. According to the FT report, China is expected to impose anti-dumping duties on EU brandy imports in an escalating trade dispute with Brussels. US APPLAUDS EU DECISION The United States Trade Representative (USTR) Ambassador Katherine Tai has seemingly welcomed the EU’s decision to impose anti-subsidy tariffs on imports of Chinese electric vehicles. “This is an important first step towards defending the interests of European industry and its workers, and demonstrates the need to confront the PRC’s non-market policies and practices,” she said, according to a report in the Washington Trade Daily on 8 October. “We know more work needs to be done and look forward to continuing engagement on these critical issues with the European Union, and other market economies, to promote our collective economic security and prosperity for our market-oriented industries and workers,” the USTR said. The US recently announced that it is imposing 100% tariffs on Chinese EVs, citing Beijing’s allegedly unfair trade practices and subsidies. Washington and Brussels are working together to “find effective means to respond to our shared challenges with respect to the PRC’s comprehensive non-market policies and practices, including its industrial targeting policies, which are undermining our workers and industries,” according to the USTR. +
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