China has formally requested consultations with the European Union (EU) through the World Trade Organization (WTO) to address what it calls discriminatory import tariffs on battery electric vehicles.
The request, submitted to WTO members on November 6, 2024, initiates a 60-day consultation period during which China and the EU can discuss the matter in an attempt to resolve it without escalating to litigation.
China argues that the EU’s import tariffs on electric vehicles violate WTO provisions under the Subsidies and Countervailing Measures (SCM) Agreement, which outlines the distinction between prohibited and actionable subsidies, and Article VI of the General Agreement on Tariffs and Trade (GATT) 1994.
The GATT framework aims to liberalize international trade through reduced tariffs and trade barriers, as well as the elimination of discriminatory practices.
In a document circulated on November 4 to the WTO’s Dispute Settlement Body, China outlined the basis for its complaint, stating that the tariffs imposed by the EU contradict key WTO principles. “China maintains that these tariffs unfairly restrict market access for electric vehicles, hampering trade growth in this sector,” the document noted.
The consultation process will provide a platform for the EU and China to negotiate a potential resolution. Should the two parties fail to reach an agreement within the stipulated 60 days, China may escalate the case by requesting a formal WTO panel to adjudicate.
China Seeks WTO Dispute Con… by Andy Williams
