On September 23, the WTO Dispute Settlement Body (DSB) agreed to China's second request to establish a dispute settlement panel to rule on whether certain tax credits provided for in the U.S. Inflation Reduction Act (IRA) are in compliance with WTO rules.
The United States said it disagreed with China's first request in July, arguing that the IRA is necessary to address climate change. China said that the subsidies in the Inflation Reduction Act are prioritized over imported U.S. goods, violating WTO rules prohibiting such discrimination.
The United States expressed disappointment with China's decision to file a panel request and reiterated that the Inflation Reduction Act is its most important step in clean energy, aimed at ensuring a secure and sustainable supply chain for the global clean energy future.
The DSB agreed to establish the panel. Argentina, Australia, Brazil, Canada, Colombia, the European Union, Indonesia, Israel, Japan, South Korea, Norway, Russia, Singapore, Switzerland, Thailand, Turkey, the United Kingdom and Venezuela reserve the right to participate in the panel proceedings as a third party.