At a Dispute Settlement Body (DSB) meeting on 24 February, World Trade Organization (WTO) members approved China’s request to establish a dispute panel to examine Türkiye’s measures affecting electric vehicles (EVs) and other vehicle imports from China. The DSB also adopted a panel ruling in Indonesia’s case against the European Union over restrictions on palm oil-based biofuels.
China’s request for the panel followed an initial attempt that Türkiye blocked at the 27 January DSB meeting. Beijing argues that Türkiye’s trade restrictions violate WTO principles, particularly the core tenet of non-discrimination. China emphasized that addressing domestic industry challenges should align with WTO commitments rather than serve as justification for protectionist measures.
Türkiye, however, expressed strong reservations about China’s move, stating that all diplomatic avenues had not yet been exhausted. Ankara contends that the dispute concerns a sector struggling with longstanding challenges, including non-competitive practices, excessive subsidies, and overcapacity in China’s EV industry.
Despite Türkiye’s objections, WTO members approved the establishment of the dispute panel. Several WTO members, including the European Union, Japan, South Korea, Brazil, Canada, Australia, the United Kingdom, the United States, Switzerland, Norway, Singapore, Russia, Thailand, and India, have reserved third-party rights to participate in the proceedings.
