WTO panel supports China in its case against US clean-energy subsidies
The World Trade Organization panel backed China's complaint on Friday, and recommended changes to the?U.S. Beijing claimed that tax credits for clean-energy?discriminated against imports.
The report of the panel recommended that the United States remove the Inflation Reduction Act measures by October 1, 2026.
The panel stated that "that date seems to be a reasonable deadline" for the withdrawal of the ITC/PTC Bonus Credits.
The 'office of the U.S. Trade Representative' said that the report "highlights what the Trump Administration has been saying for years: existing WTO regulations are inadequate to deal with massive and harmful excess capacities?in many sectors, including energy technology."
Washington can appeal the ruling, but the WTO top appeals court will not issue a final decision as it is paralyzed.
China's Ministry of Commerce praised the fair and objective ruling of the panel.
The IRA introduced by former U.S. 'President Joe Biden' provides billions in tax credits for?helping consumers buy electric cars and companies produce renewable energies in an effort to?"decarbonise" the mighty U.S. energy sector.
In its March 2024 complaint, China claimed that the WTO proceedings were necessary to protect the interests of China’s electric vehicle industry as well as maintain an equal playing field worldwide. (Reporting and editing by Ludwig Burger, Bhargav Asharya, Kirsti Knolle & Emma Farge; Additional reporting by Emma Farge)
(source: Reuters)