CHINA / SWITZERLAND – China has requested World Trade Organization (WTO) dispute consultations with the United States regarding certain tax credits under the US Inflation Reduction Act to promote the production of electric vehicles and renewable energy projects.
The request was circulated to WTO members on 28 March.
China claims the US credits at issue are contingent on the use of domestic over imported goods or discriminate against goods of Chinese origin in violation of provisions under the General Agreement on Tariffs and Trade 1994, the Agreement on Trade-Related Investment Measures and the Agreement on Subsidies and Countervailing Measures.
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.