(Yicai) July 29 -- The World Trade Organization has ruled in China's favor in a dispute over Turkish restrictions on Chinese electric vehicles and other vehicle imports, finding that the measures challenged by China are inconsistent with the international trade body’s rules.

The WTO found that Türkiye's additional duties on EVs and some hybrid vehicles imported from China violate the General Agreement on Tariffs and Trade 1994, according to a dispute-settlement panel report released yesterday. The panel also ruled that Türkiye's import licensing regime for those vehicles is incompatible with its obligations under the GATT.

Türkiye began imposing additional tariffs on China-made EV imports in March 2023 and expanded the measures to cover all Chinese passenger vehicles in July 2024. It also introduced an EV import licensing system in December 2023 before extending that to plug-in hybrids in September 2024.

China requested WTO consultations with Türkiye over the measures in October 2024. After the consultations failed to resolve the dispute, China sought the establishment of a WTO dispute-settlement panel in January last year, with the panel formally constituted the following month.

“We conclude that, to the extent that the measures at issue are inconsistent with the GATT 1994, they have nullified or impaired benefits accruing to China under that agreement,” the report noted. "We recommended that Türkiye bring its measures into conformity with its obligations under the GATT 1994.”

China welcomes the ruling and calls on Türkiye to respect the panel's decision and take prompt and concrete steps to bring the disputed measures into conformity with WTO rules, a senior official in the commerce ministry’s treaty and law department said today.

“On the basis of compliance with multilateral trade rules, China is ready to continue deepening trade and investment cooperation with all parties, including in the new energy vehicle sector, so as to achieve common development,” the person said.

The official added that since 2023, Türkiye has implemented restrictive measures, such as additional tariffs and import licenses on Chinese electric and hybrid cars, which violate multilateral trading rules, such as binding tariffs along with national and most-favored-nation treatments, severely harming China's legitimate trade interests as well as economic and trade relations between the two countries.

Editors: Tang Shihua, Futura Costaglione