DS629: Türkiye — Measures Concerning Electric Vehicles and Other Types of Vehicles from China

China submitted its second request for the establishment of a dispute panel to rule on various measures taken by Türkiye concerning electric vehicles (“EVs”) and certain other types of vehicles originating in China. China's first request was blocked by Türkiye at the previous DSB meeting on 27 January. China said challenges faced by one member's industry need to be addressed in a way consistent with its WTO obligations and should not be used as an excuse for abandoning the core principle of non-discrimination that is the bedrock of the WTO and of the rules-based international trading system.

Türkiye said it is deeply concerned that China is making such a request before all possible bilateral consultations are exhausted. China's request relates to a major sector that has been facing strong challenges for many years due to uncompetitive practices, subsidization and excess capacity, Türkiye said.

The DSB agreed to the establishment of the panel. The European Union, Japan, the Republic of Korea, Brazil, Canada, Australia, the United Kingdom, the United States, Switzerland, Norway, Singapore, the Russian Federation, Thailand and India reserved their third-party rights to participate in the panel proceedings.

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

Indonesia noted the panel ruling circulated on 10 January, which it said found that the European Union's 2018 renewable energy directive and related regulations unfairly discriminated against Indonesia's palm oil biofuels. The economic impact of these discriminatory measures is substantial and has severely affected Indonesian palm oil exports, impacting millions of farmers and businesses, Indonesia said. It called on the EU to adjust its policy and the measures at issue so that they are in line with the WTO agreements; Indonesia will closely monitor implementation and expects swift compliance.

The European Union said it welcomed the panel's findings, which confirm that the EU has the right to take measures to ensure that its policies on renewable fuels do not exacerbate greenhouse gas emissions associated with indirect land-use change. While it raised some concerns regarding the panel's findings, the EU said the panel found that the EU measures aim to achieve legitimate environmental objectives and that they are science-based.

Russia, Brazil, the United States, and St Vincent and the Grenadines (for the Organisation of African, Caribbean and Pacific States) took the floor to comment on the panel report.

The DSB took note of the statements and adopted the panel report.

DS599: Panama — Measures Concerning the Importation of Certain Products from Costa Rica

Costa Rica made a statement criticizing Panama's decision to appeal the panel report in DS599, which upheld Costa Rica's complaint regarding Panama's import restrictions on various fruit, dairy and meat products from Costa Rica. Costa Rica proposed a bilateral agreement to Panama that would enable both parties to proceed to arbitration under Article 25 of the Dispute Settlement Understanding (DSU), but Panama refused, Costa Rica said. Panama's appeal “into the void” should serve to highlight the importance of alternative avenues under the DSU to resolve disputes, Costa Rica said.

Panama said it reaffirms its commitment to international law and to the WTO agreements in general and the DSU in particular, and its willingness to settle any dispute with its trading partners.

The European Union, Canada and Colombia made statements on the matter.

Appellate Body appointments

Colombia, speaking on behalf of 130 members, introduced for the 84th 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 repeated that the US is currently transitioning to a new administration and that, as US concerns with WTO dispute settlement remain unaddressed, it does not support the proposed decision.

Twenty-two members then took the floor to comment, one speaking on behalf of the ACP Group. 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 supported the proposal by the previous General Council Chair to commence consultations on advancing the discussions.

Ten members (China; Canada; Hong Kong, China; Switzerland; Singapore; the European Union; Australia; Norway; Japan; and New Zealand) urged members 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 said on behalf of the 130 members that it regretted that, on 84 occasions, 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, in line with 17.2 of the DSU, members shall comply with their obligation under the Dispute Settlement Understanding to fill the vacancies as they arise, Colombia said on behalf of the group.

Surveillance of implementation

The United States presented status reports with regard to DS184, “United States — 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.” 

Election of Chairperson

At the end of the meeting, the DSB elected Ambassador Clare Kelly of New Zealand as Chair of the DSB for the coming work year.

Next meeting

The next regular DSB meeting will take place on 24 March.

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