The WTO Dispute Settlement Expert Group believes that Turkey's imposition of a 40% additional tariff on China's electric vehicles, as well as additional taxes on some hybrid vehicles, and import licensing conditions, are not in compliance with relevant World Trade Organization rules...

According to Turkish media TurkPress citing a report from the World Trade Organization (WTO) Dispute Settlement Mechanism, the WTO Dispute Settlement Expert Group has recommended that Turkey revise some restrictions on China's automobile imports, believing that they include imposing a 40% additional tariff on China's electric vehicles, as well as some hybrid vehicle surtaxes, import licensing conditions, etc., which do not comply with relevant World Trade Organization rules.

The dispute originated from a lawsuit filed by China with the WTO in October 2024. At that time, Turkey announced a 40% additional tariff on imported electric vehicles from China and levied taxes on some hybrid vehicles. It also required China automobile importers to meet a series of access conditions such as after-sales service network, authorized representatives, service centers, and battery protection before obtaining import licenses.

The WTO expert group believes that Turkey's additional tariffs on China's electric vehicles and some hybrid vehicles have exceeded the tariff ceiling it committed under the 1994 General Agreement on Tariffs and Trade (GATT), so it is recommended that Turkey adjust relevant measures to make them in line with international trade rules.

However, the expert group did not fully support all of China's demands. For example, regarding China's import tariffs on traditional fuel vehicles, the expert group believed that the evidence submitted by China was insufficient, so it did not find that Turkey violated WTO rules.

The report also pointed out that Turkey has set a series of import conditions for China's new energy vehicles, including requirements for the establishment of after-sales service centers, customer service systems, authorized representatives and battery-related supporting arrangements, so that China products receive lower treatment than domestic products, which is inconsistent with relevant GATT regulations. Turkey has argued that the measures are for consumer protection and vehicle certification regulation, but the expert group believes that Turkey failed to provide sufficient evidence to justify the restrictions.

At the same time, the expert group also discussed Turkey's import exemptions for free trade agreement partners. The report believes that granting tariff preferences to most countries that have signed free trade agreements with Turkey can obtain legal support in accordance with Article 24 of the GATT; however, there is no sufficient legal basis for applying the same treatment to Venezuela.

According to WTO procedures, the current expert group report is an important stage in the dispute settlement process. If relevant parties appeal in the future, the case may still enter further trial procedures; if the final ruling is upheld, Turkey needs to adjust relevant policies in accordance with WTO recommendations.

 written in the end 

What the WTO proposes to adjust this time is some of Turkey's trade measures against China cars, which does not mean that relevant tariffs and import restrictions will be immediately lifted. But for China's automobile exporters, this development sends an important signal: international market competition is gradually extending from product competition to rule competition. In the future, when entering the Middle East and surrounding European markets, companies must not only do a good job in products and prices, but also lay out certification, after-sales network and compliance systems in advance to better cope with the changing trading environment.

Source: Guangdong Good Car

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