China Seeks WTO Panel on India Incentives as Dispute System Stalemate Persists

China said it remains open to resolving the dispute amicably with India in line with WTO rules.

WTO members meeting at the Dispute Settlement Body (DSB) on 27 January considered a request by China to establish a dispute panel to examine Indian incentive measures in the automotive and renewable energy technology sectors, including advanced battery manufacturing, electric vehicles, and auto components.

The dispute, DS642: India – Measures Concerning Trade in the Automotive and Renewable Energy Technology Sectors, centres on Chinese claims that India’s incentives are linked to the use of domestic goods or otherwise discriminate against products of Chinese origin, in breach of WTO obligations.

China said consultations held on 25 November 2025 and 6 January 2026 failed to resolve the matter, prompting its request for a panel. It argued that the measures are trade-restrictive and discriminatory, and stressed that climate and renewable energy goals are best achieved through international cooperation rather than trade barriers.

China said it remains open to resolving the dispute amicably with India in line with WTO rules.

India said it had engaged in consultations in good faith and remained committed to WTO obligations, but maintained that China’s request was based on an inaccurate understanding of the facts. On that basis, India said it was not in a position to accept the establishment of a panel at this stage.

The DSB took note of the statements and agreed to revert to the matter if requested by a member.

Compliance updates

In DS591: Colombia – Anti-Dumping Duties on Frozen Fries from Belgium, Germany and the Netherlands, Colombia reported that administrative procedures are in their final stages and that it expects to achieve compliance before March 2026, in line with its domestic resolution. The European Union welcomed the update and said the dispute remains under DSB surveillance.

Appellate Body deadlock continues

Colombia, speaking on behalf of 130 WTO members, introduced for the 94th time a proposal to launch the selection process to fill vacancies on the Appellate Body, citing broad concern over the erosion of the WTO’s dispute settlement system.

The United States reiterated that its longstanding concerns with the system remain unaddressed and questioned the value of repeatedly tabling the proposal.

More than 20 members took the floor, many reaffirming their support for restoring a fully functioning dispute settlement system. Several encouraged broader participation in the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), while cautioning that interim solutions should not replace efforts to restore the Appellate Body.

Colombia said members do not consent to the continued erosion of the system and pledged to continue advancing the proposal.

Surveillance of implementation

Members also reviewed implementation status reports from the European Union, United States, and Indonesia covering a range of long-standing disputes, which remain under DSB surveillance.

The next regular DSB meeting is scheduled for 24 February 2026.

Members are urged to intensify engagement on both active disputes and systemic reform to ensure predictability, fairness and credibility in the global trading system.