On March 26, 2024, China requested consultations with the United States with respect to certain subsidies that the United States allegedly provides under the Inflation Reduction Act (IRA) that are contingent upon the use of domestic over imported goods or that otherwise discriminate against goods of Chinese origin. These comprise: (i) the Clean Vehicle Credit; and (ii) the Renewable Energy Tax Credits (including the Investment Tax Credit for Energy Property; the Clean Electricity Investment Tax Credit; the Production Tax Credit for Electricity from Renewables; and the Clean Electricity Production Tax Credit).
China claimed that the challenged measures appear to be inconsistent with:
• Article III:4 of the GATT 1994;
• Articles 2.1 and 2.2 of the TRIMS Agreement; and
• Articles 3.1(b) and 3.2 of the SCM Agreement.
In addition, China claimed that the Clean Vehicle Credit appears to be inconsistent with Article I:1 of the GATT 1994.
On April 5, 2024, the United States requested the Chair of the DSB to circulate to Members a communication where it indicated that the United States accepted China's request to enter into consultations, without prejudice to whether each of the items in China's consultations request constituted a “measure” within the meaning of Article 4 of the DSU, or whether the request raised issues of national security not susceptible to review or capable of resolution by WTO dispute settlement.
On July 15, 2024, China requested the establishment of a panel. At its meeting on July 26, 2024, the DSB deferred the establishment of a panel.
At its meeting on September 23, 2024, the DSB established a panel. Argentina, Australia, Brazil, Canada, Colombia, Ecuador, the European Union, Hong Kong, China, Indonesia, Israel, Japan, Korea, Malaysia, Mexico, Norway, the Russian Federation, Singapore, Switzerland, Thailand, Türkiye, United Arab Emirates, the United Kingdom, Venezuela, and Vietnam reserved their third-party rights.
| Brief Date | Brief Description |
|---|---|
| 01/10/2025 | U.S. Letter Request to China Regarding Open Meetings and Non-Confidential Summaries |
