China Opens WTO Dispute on Turkey's 40% Duties on Chinese EVs

China opened a dispute at the World Trade Organization Oct. 11 against Turkey's 40% import duties on Chinese electric vehicles, the WTO announced. The complaint said the rate is greater than the duty rate laid out in Turkey's schedule of concessions and higher than duties on EV imports from other nations.

Turkey also imposed 40% duties, or a $7,000 per vehicle duty, whichever is higher, on vehicles from China that fall under certain tariff lines. The measures offer an exemption "within the scope of the investment incentive certificate" under the nation's investment incentives program.

China claims that the measures violate articles I, II, II, X and XI of the General Agreement on Tariffs and Trade 1994 and Article 2.1 of the Agreement on Trade-Related Investment Measures (TRIMS). The complaint alleges that Turkey violated the GATT 1994 by failing to "administer its import permit certificate scheme in a uniform, impartial, and reasonable manner." The measures also "fail to accord" other types of vehicles coming from China with treatment "no less favourable than that accorded to the like products of national origin."

The complaint added that Turkey bucked the TRIMS Agreement because the "import permit certificate scheme constitutes an investment measure related to trade in goods" that violates the GATT 1994. The investment incentive certificate exemption also amounts to an investment measure related to trade in goods, in violation of the GATT 1994, China said.

The parties now have 60 days to negotiate. If no solution is reached, China can request a dispute settlement panel.