Panel to review Indian measures on batteries, e-vehicles; US appeals tax credits report

The Dispute Settlement Body (DSB) agreed at its meeting on 24 February to a request from China for the establishment of a panel to review certain measures imposed by India in the automotive and renewable energy sectors. The United States notified its decision to appeal the panel report in a case initiated by China regarding certain tax credits under the US Inflation Reduction Act.

Note

This summary has been prepared by the WTO Secretariat's Information and External Relations Division to help public understanding about developments in WTO disputes. It is not a legal interpretation of the issues, and it is not intended as a complete account of the issues. These can be found in the reports themselves and in the minutes of the Dispute Settlement Body's meetings.

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DS642:�India - Measures Concerning Trade in the Automotive and Renewable Energy Technology Sectors

China submitted its second request for the establishment of a dispute panel to rule on Indian measures in the automotive and renewable energy sectors which include incentives for the production of advanced chemistry cell batteries, automobile and auto components, and electric vehicles in India. India had said it was not ready to accept China's first request for a panel at a DSB meeting on 27 January.�

China said it considers India's incentive schemes unfairly discriminate against foreign businesses and restrict trade, thereby violating WTO rules including the principles of national treatment and the prohibition of import substitution subsidies.�

India said it regretted that China requested the establishment of a panel. India said it participated in consultations with China in good faith and provided detailed explanations to show that its measures comply with WTO obligations. India said it remains confident its measures are fully compatible with WTO rules.�

The United States, a third party, expressed disappointment over China's decision to proceed with the panel request. The US called on China to address its own non-market policies and excess capacity, saying these policies harm global supply chains.�

The DSB agreed to the establishment of the panel. �

Canada, Colombia, the European Union, Indonesia, Japan, Korea, Norway, Russia, Singapore, Thailand, T�rkiye, the United Kingdom and the United States reserved their third-party rights to participate in the proceedings.�

DS623:�United States - Certain Tax Credits under the Inflation Reduction Act

At the start of the meeting, the Chair of the DSB, Ambassador Clare Kelly (New Zealand), said that the adoption of the panel ruling in�DS623, "United States - Certain Tax Credits Under the Inflation Reduction Act", was being removed from the agenda as a result of the United States' decision to appeal the ruling. The panel report was circulated to WTO members on 30 January 2026.

China expressed disappointment over the US decision to appeal the panel's findings before a non-functioning Appellate Body. China said it considers that the panel has conducted a careful and impartial assessment of the facts of this dispute and the relevant covered agreements.

The US said the panel report avoided meaningful findings on what US said was China's non-market policies and dominance in renewable energy sectors. The US said the report undermines members' efforts to protect workers and businesses from China's practices.�

The EU, a third party, said this case demonstrates the need for an appeal review.�

DS632: China - Worldwide Licensing Terms for Standard Essential Patents (SEPs)�

The European Union submitted its first request for the establishment of a dispute panel with respect to Chinese patent licensing measures.�

Consultations between the EU and China took place on 1 and 2 April 2025 but failed to resolve the dispute, which the EU said relates to the authority of Chinese courts to issue binding and enforceable decisions fixing the worldwide licensing conditions for portfolios of patents. The EU said China's measures unduly restrict the ability of patent owners to exercise and enforce their rights for non-Chinese patents in the territories of the WTO members that grant those patents. Moreover, it undermines the principle of territoriality of patents, the EU said. Consultations with China failed to solve the matter, the EU said.�

China said the issue of SEPs is highly complex and lacks any international resolution. China expressed disappointment that the EU chose to raise this matter at the WTO instead of pursuing constructive discussions in a more suitable forum. China said it is not in a position to accept the EU's request for the establishment of a panel. The DSB took note of the statements and agreed to revert to the matter if requested by a member.�

DS616: European Union - Countervailing and Anti-Dumping Duties on Stainless Steel Cold-Rolled Flat Products from Indonesia

The US, a third party, raised this item to highlight an interpretive issue concerning the Agreement on Subsidies and Countervailing Measures (SCM) and transnational subsidies. The panel report for this dispute was circulated on 2 October 2025 but was appealed by both the EU and Indonesia in November.�

The US said the panel report was troubling, emphasizing that injury to an affected member is the same whether a subsidy comes from the exporting member or a third country. The US warned against an interpretation of the SCM Agreement that encourages unfair competition and hinders efforts to address genuine harm to businesses and workers. The EU expressed concern over the panel report and stated it does not expect the findings to influence future disputes. Several members also expressed concern.�

China disagreed with the US and other members' interpretations. China warned that attributing cross-border subsidies to other members would disrupt the negotiated balance in WTO rules and create legal uncertainty.�

Indonesia stated it would consult with its capital regarding the issue.�

Appellate Body appointments�

Colombia, speaking on behalf of 130 members, introduced for the 95th 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 said its fundamental concerns with the dispute settlement system have not been addressed, and it questioned the value of repeating the agenda item.�

More than 20 members took the floor to comment, one speaking on behalf of a group of members. Many reiterated their support for restoring a fully functioning dispute settlement system.�

Several members urged others to consider joining the��Multi-Party Interim Appeal Arbitration Arrangement(MPIA), although one member said the MPIA should not undermine efforts to restore a fully functioning dispute settlement system.�

Colombia, on behalf of the 130 members, said it regretted that for the 95th occasion members have not been able to launch the selection processes. Colombia said it will continue to advance the proposal because members did not and do not consent to the erosion of the dispute settlement system.�

Surveillance of implementation

The EU presented its status report with regard to�DS600,�"European Union and Certain Member States�-�Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels",�DS291,�"European Communities�-�Measures Affecting the Approval and Marketing of Biotech Products",��and�DS593, "European Union - Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels."�

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".�

Indonesia presented its status reports in�DS477�and�DS478, "Indonesia - Importation of Horticultural Products, Animals and Animal Products".�

Next meeting

The next regular DSB meeting will take place on 21 April 2026.

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