Members consider China’s request for panel to examine EU battery electric vehicle duties

DS630: European Union — Definitive Countervailing Duties on New Battery Electric Vehicles from China

China submitted its first request for the establishment of a dispute panel with respect to the definitive countervailing duties imposed by the European Union in October 2024 on new battery electric vehicles from China. The request also concerns the underlying investigation that led to the imposition of the duties. China and the European Union held consultations in December 2024 with the aim of reaching a mutually satisfactory solution but failed to resolve the dispute, China said, prompting its request for the panel.

China outlined the various concerns it had about the process resulting in the duties. It said this process was not carried out in a manner consistent with the WTO's Agreement on Subsidies and Countervailing Measures and the General Agreement on Tariffs and Trade 1994.  China said that while WTO members have the legitimate right to adopt trade remedy measures, such rights must be exercised within the confines of the WTO agreements.

The European Union said it regretted China's decision to request a panel. The EU said it had hoped the consultations with China had provided the necessary information and clarifications China needed. China undoubtedly has the right to bring this issue to WTO dispute settlement, the EU said, but it strongly maintains that the measures in question are entirely justified and is confident they are in compliance with WTO rules. The EU said it is not ready to accept the establishment of a panel.

The DSB took note of the statements and agreed to revert to this matter should a requesting member wish to do so.

DS593: European Union – Certain Measures Concerning Palm Oil and Oil Palm Crop Based Biofuels

The European Union said it intended to implement the panel ruling in DS593 by bringing the concerned measures into conformity with the WTO agreements. The EU said it was impractical for it to comply immediately and that it needed a reasonable period of time to do so.  The EU added that it was keen to discuss and agree with Indonesia the length of this period of time at the earliest available opportunity, as it has done with Malaysia in a related dispute case.

Indonesia underlined the necessity for the EU to adjust its policies in line with the WTO agreements as well as the importance of prompt and effective implementation of the panel's ruling. Indonesia said it is committed to working constructively with the EU to ensure a smooth and efficient implementation process. It encouraged the EU to provide a clear and detailed timeline for this process.

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 further alarming developments and effects of the National Security Law of Hong Kong, China on 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 it was regrettable that the United States continues to abuse DSB meetings as a platform for political posturing. The US approach reflects a troubling presumption that it alone has the authority to interpret national security matters, said Hong Kong, China, adding that it remains frustrated at being deprived of the legitimate right to allow the case to be settled through a proper channel.

China reiterated its objections to the item being placed on the DSB agenda. It said the WTO dispute settlement mechanism is a forum to resolve trade disputes rather than a place to discuss political issues.

Appellate Body appointments

Colombia, speaking on behalf of 130 members, introduced for the 85th 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 said it does not support the proposed decision and noted its longstanding concerns with WTO dispute settlement that have persisted across US administrations. The US said the panel reports in DS593 and DS597 provided examples of its concerns regarding WTO dispute settlement overreach. The US said fundamental reform of WTO dispute settlement is needed to address these and other US concerns. Despite extensive US engagement, WTO members continue to have vastly different perspectives on the role of WTO dispute settlement in today’s world and the reforms that are needed, it added.

More than 20 members took the floor to comment, one speaking on behalf of a group of members. Most reiterated their support for the joint proposal and for the urgent need to restore a fully functioning dispute settlement system. Several welcomed the progress made in the dispute settlement reform discussions last year and said they looked forward to starting consultations on how to take the process forward. 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, on behalf of the 130 members, said it regretted that for the 85th 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

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 25 April 2025.

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