On 06 November 2024, the People’s Republic of China (China) requested the World Trade Organization (WTO) dispute consultations with the European Union (EU) regarding the EU’s imposition of definitive countervailing duties on new battery electric vehicles (BEVs) from China.
China claims the EU's determination that alleged Chinese programmes cited by the EU constitute countervailable subsidies appears to be inconsistent with various provisions of the WTO's Agreement on Subsidies and Countervailing Measures (SCM) and Article VI of the General Agreement on Tariffs and Trade (GATT) 1994. China also claims that the EU acted inconsistently with various provisions of the SCM Agreement and Article VI of the GATT 1994.
Note: A separate request for consultations with the EU was filed by China on 09 August 2024 concerning the same investigation and the provisional countervailing duties imposed by the EU on imports of BEVs from China.
What is a request for consultations?
The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
