Panel to review EU carbon border adjustment mechanism and emissions trading scheme
DS639: European Union and its Member States - Carbon Border Adjustment Mechanism
The Russian Federation submitted its second request for the establishment of a dispute panel to determine whether the European Union's CBAM and alleged export subsidy under the EU scheme for trading greenhouse gas emission allowances are consistent with the EU's WTO commitments. The EU had objected to Russia's first request for a panel at a DSB meeting on 24 July.
Russia said the CBAM package creates significant trade barriers for covered goods imported into the EU. Russia added that the EU's allocation of allowances to certain companies under the Emissions Trading System (ETS) amounts to an export subsidy intended to strengthen the competitiveness of certain domestic industries.
The EU said it was extraordinary that Russia - which the EU said continues to "wage its war of aggression against Ukraine" - is seeking to rely on international law to improve access for exports into the EU market. The EU said it would take part in the proceedings, not to legitimize Russia's actions, but to reaffirm the EU's strong support for the rules-based multilateral trading system. It also expressed confidence that both the CBAM and the ETS are consistent with WTO rules.
The DSB agreed to the establishment of the panel.
Argentina, Brazil, Canada, China, India, Indonesia, Japan, the Kingdom of Saudi Arabia, the Republic of Korea, Malaysia, Norway, Paraguay, Singapore, Switzerland, Chinese Taipei, Thailand, the United Kingdom and the United States reserved their third-party rights to participate in the proceedings.
DS629: Türkiye - Measures Concerning Electric Vehicles and Other Types of Vehicles from China
China and Türkiye said they sought to continue engagement with each other for a resolution of this dispute. They requested additional time for the DSB to consider for adoption the panel report circulated on 28 July 2026 in the case initiated by China regarding measures adopted by Türkiye concerning electric vehicles and certain other types of vehicles originating in China.
The parties asked that the DSB further delay consideration of the panel report until 27 October 2026.
The DSB agreed to the request.
Appellate Body appointments proposal
Colombia, speaking on behalf of 130 members, introduced for the 100th time the group's proposal to start the selection processes for filling vacancies on the Appellate Body (AB). 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 that it does not support the proposed decision. The US reiterated that it has set out its fundamental concerns on WTO dispute settlement and that the proposal does not address those concerns. The US stated that, despite efforts by the US and other members in recent years to identify suitable reforms, there remains a wide divergence in views among members regarding the necessary changes.
Over 20 members then took the floor and reiterated their support for the joint proposal and for the urgent need to restore a fully functioning dispute settlement system. Several of the members that took the floor encouraged others to consider taking part in the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), which provides the possibility of resorting to arbitration under Article 25 of the Dispute Settlement Understanding (DSU) in case of an appeal in disputes between any two or more participating members. Several members welcomed Cambodia as the newest member to join the MPIA. The list of current members of the MPIA is available here.
Colombia, on behalf of the 130 members, said it regretted that for the 100th occasion members have not been able to launch the selection processes. Ongoing conversations about reform of the dispute settlement system should not prevent the Appellate Body from continuing to operate fully, and members shall comply with their obligations under the DSU to fill the vacancies as they arise, Colombia said for the group.
Information session on dispute settlement reform
The DSB Chair, Ambassador Guilherme de Aguiar Patriota of Brazil, said members' statements at an informal meeting held on 24 July broadly supported information sessions to preserve institutional memory on DS reform. The first information session, held after the DSB meeting on 25 September, consisted of two parts: the first on the history of the DS system, including trends in dispute activity and use of different means of dispute resolution; the second on DS reform processes following the 12th and 13th Ministerial Conferences.
Surveillance of implementation
The United States presented status reports with regard to DS184, "US - 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."
The EU presented it status report with regard to DS600 "European Union and Certain Member States - Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels" and DS291, "EC - Measures Affecting the Approval and Marketing of Biotech Products" and DS593, "European Union - Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels."
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 27 October 2026.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
