At the recent World Trade Organization (WTO) Dispute Settlement Body (DSB) meeting on January 27, 2025, China formally requested the establishment of a dispute panel to examine measures adopted by Turkey regarding electric vehicles (EVs) and certain other types of vehicles imported from China. This request follows consultations in November 2024 that were unable to resolve the dispute, leading China to seek a panel review.
China argues that Turkey’s actions are overly restrictive and violate key WTO obligations, including most-favored-nation treatment and tariff commitments. China raised concerns about the growing trend of trade barriers on Chinese new energy products, particularly EVs, and emphasized that such protectionist measures are inconsistent with WTO rules. China views this panel request as a necessary step to ensure fair trade practices and protect its market access.
In response, Turkey explained that the measures were implemented to safeguard its automotive industry, which faces significant challenges due to anti-competitive practices, excess production capacity, and unfair subsidies. Turkey contends that these measures are crucial for the health of its domestic market, given the long-standing difficulties it has faced in the sector. Although Turkey has expressed openness to further discussions, it has not agreed to the formation of a panel at this stage. The matter is expected to remain under consideration in the coming months, with both sides hopeful for a constructive resolution.
Meanwhile, the United States raised concerns at the meeting about a WTO ruling related to origin marking requirements on products from Hong Kong, China. This ongoing issue underscores the continued importance of using the WTO dispute settlement system to address trade disputes and ensure compliance with international rules.
The meeting also highlighted the need to fill vacancies in the WTO’s Appellate Body, with members stressing the importance of maintaining a fully functioning dispute settlement mechanism. The proposal to advance this process has the support of over 130 WTO members, demonstrating a shared commitment to upholding the integrity of the global trading system.
In addition to these discussions, Australia provided an update on its full implementation of the WTO ruling in the case concerning anti-dumping measures on products from China, showcasing the positive impact of the WTO dispute resolution system in addressing trade frictions.
As the global trading community continues to navigate these challenges, the ongoing commitment to a fair, transparent, and rules-based multilateral trading system remains at the heart of the WTO’s work.
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