China has submitted a formal request for the establishment of a dispute panel to the World Trade Organization (WTO) to rule on various measures implemented by Türkiye concerning electric vehicles (EVs) and certain other types of vehicles originating in China.
This move follows unsuccessful consultations held on 20-21 November 2024, which aimed to resolve the dispute but failed to yield a mutually agreeable solution.
China has accused Türkiye of adopting protectionist and discriminatory measures that violate core obligations under the WTO agreements, including the most favored nation treatment, tariff bindings, and the general elimination of quantitative restrictions.
China expressed serious concerns that Türkiye, along with other members, has introduced restrictive measures on Chinese new energy products, including EVs, which are inconsistent with WTO rules. According to China, increased technological protectionism is not the answer, prompting the request for a panel as a response to these alleged unlawful measures.
In response, Türkiye stated that the consultations in November 2024 were constructive, with both sides sharing information and clarifications in a cooperative manner.
Türkiye defended its measures, citing long-standing challenges its automotive industry has faced, including anti-competitive practices, subsidization, and excess capacity.
Türkiye emphasized that these issues should be addressed within the relevant WTO bodies to ensure a level playing field in industrial sectors. Consequently, Türkiye declined to agree to the establishment of a panel at this time.
The WTO’s Dispute Settlement Body (DSB) took note of the statements and agreed to revisit the matter if the requesting member wishes to pursue it further.
