By Kevin Akor
GENEVA, Jan. 27, 2026 (chatnewstv.com) — World Trade Organization members on Tuesday considered a request by China to establish a dispute panel to examine Indian incentive schemes for batteries, electric vehicles and related technologies, a case that adds to growing trade frictions over green industrial policies.
At a meeting of the WTO’s Dispute Settlement Body, China asked for a panel to review Indian measures covering advanced chemistry cell batteries, automobiles, auto components and electric vehicles, arguing that the incentives unfairly favor domestic goods and discriminate against Chinese products.
China said the measures tie benefits in India’s automotive and renewable energy technology sectors to the use of locally made inputs, making them “trade-restrictive and discriminatory” and inconsistent with India’s obligations under WTO agreements.
“China believes the best way to achieve climate change and renewable energy goals is through collaboration among WTO members,” Beijing said, adding that it remains open to resolving the dispute amicably in line with WTO rules.
China told members it had held consultations with India on Nov. 25, 2025, and Jan. 6, 2026, but those talks failed to settle the dispute, prompting its first request for the establishment of a panel in the case, known as DS642.
India rejected the request, saying it had engaged with China “in good faith” during consultations with the aim of reaching a mutually satisfactory outcome. New Delhi said there appeared to be “an inaccurate understanding of the facts” and that it was therefore not in a position to agree to the establishment of a panel at this stage.
The dispute settlement body took note of the statements and agreed to return to the matter if a member requests it again, as is standard WTO procedure.
The meeting also addressed several other long-running trade disputes and systemic issues facing the WTO’s dispute settlement system.
In a separate case, Colombia updated members on its efforts to comply with rulings on anti-dumping duties imposed on frozen fries from Belgium, Germany and the Netherlands. Colombia said it expects to achieve compliance before March 2026 and that administrative procedures are in their final stages. The European Union thanked Colombia for the update and said the issue remains under WTO surveillance.
Debate over the stalled Appellate Body again dominated part of the meeting. Speaking on behalf of 130 members, Colombia for the 94th time introduced a proposal to begin the selection process to fill vacancies on the WTO’s top appeals 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 reiterated that its long-standing concerns with the dispute settlement system remain unresolved and questioned “the value of repeating the agenda item.” More than 20 members took the floor to express support for restoring a fully functioning dispute settlement mechanism, while some urged others to join the Multi-Party Interim Appeal Arbitration Arrangement, a temporary alternative to the Appellate Body.
Colombia said it regretted that, for the 94th time, members had been unable to launch the selection process. “Members did not and do not consent to the erosion of the dispute settlement system,” it said, pledging to continue advancing the proposal.
Members also reviewed implementation of past rulings, with status reports presented by the European Union, the United States and Indonesia on a range of disputes covering biofuels, biotech products, steel, copyright, washing machines and agricultural imports.
The next regular meeting of the WTO’s Dispute Settlement Body is scheduled for Feb. 24, 2026.
