WTO sets up panel to review India’s EV and battery policies after China flags trade concerns

The World Trade Organization’s Dispute Settlement Body (DSB) on February 24 agreed to establish a panel at China’s request to examine certain measures imposed by India in the automotive and renewable energy sectors.China has challenged India’s policies relating to batteries and electric vehicles, arguing that some of the measures may be inconsistent with WTO rules. The newly formed panel will review the matter and issue findings in due course.

Separately, the United States informed the DSB that it will appeal a panel report in a dispute brought by China over certain tax credits under the US Inflation Reduction Act. The case relates to clean energy incentives introduced by Washington as part of its domestic climate policy framework.
The developments mark continued trade tensions among major economies over industrial policy, subsidies and clean energy support measures, as governments ramp up incentives to strengthen domestic manufacturing in emerging sectors such as electric mobility and renewables.The WTO dispute process allows members to challenge measures they believe violate global trade rules, with panel findings subject to appeal under the organisation’s dispute settlement system.