WTO rules against Turkey's tariffs on Chinese electric vehicles

The World Trade Organization’s dispute panel ruled that Turkey’s 40% additional duty on Chinese‑made electric cars, as well as extra requirements imposed under its Import Permit System (IPLS), breach WTO rules. The panel found the tariff exceeded the ceiling Turkey pledged under the GATT 1994 agreement and that the IPLS obligations – such as mandatory service centres, call centres, local representatives and battery commitments – were not sufficiently justified to protect consumers.

Turkey introduced the extra duty in 2023 to support domestic production and curb its current‑account deficit, extending the measure in June 2024 to cover gasoline‑engine and hybrid vehicles. China challenged the measures as discriminatory, prompting the WTO case. The panel’s decision is not immediately enforceable; it must be approved by the WTO Dispute Settlement Body or survive any appeal, a process likely to be prolonged given the Appellate Body’s inactivity since 2019.