United States — Certain Tax Credits Under the Inflation Reduction Act, DS623, WTO.
Current status
Panel composed on 19 December 2024
Latest document
United States - Certain tax credits under the inflation reduction act - Constitution of the Panel established at the request of China - Note by the Secretariat
WT/DS623/4 | 20 December 2024
Summary of the dispute to date
The summary below was up-to-date at 10 January 2025
Consultations
Complaint by China
On 26 March 2024, China requested consultations with the United States with respect to certain subsidies that the United States allegedly provides under the Inflation Reduction Act (IRA) that are contingent upon the use of domestic over imported goods or that otherwise discriminate against goods of Chinese origin. These comprise: (i) the Clean Vehicle Credit; and (ii) the Renewable Energy Tax Credits (including the Investment Tax Credit for Energy Property; the Clean Electricity Investment Tax Credit; the Production Tax Credit for Electricity from Renewables; and the Clean Electricity Production Tax Credit).
China claimed that the challenged measures appear to be inconsistent with:
Article III:4 of the GATT 1994;
Articles 2.1 and 2.2 of the TRIMS Agreement; and
Articles 3.1(b) and 3.2 of the SCM Agreement.
In addition, China claimed that the Clean Vehicle Credit appears to be inconsistent with Article I:1 of the GATT 1994.
On 5 April 2024, the United States requested the Chair of the DSB to circulate to Members a communication where it indicated that the United States accepted China's request to enter into consultations, without prejudice to whether each of the items in China's consultations request constituted a “measure” within the meaning of Article 4 of the DSU, or whether the request raised issues of national security not susceptible to review or capable of resolution by WTO dispute settlement.
Panel and Appellate Body proceedings
On 15 July 2024, China requested the establishment of a panel. At its meeting on 26 July 2024, the DSB deferred the establishment of a panel.
At its meeting on 23 September 2024, the DSB established a panel. Argentina, Australia, Brazil, Canada, Colombia, Ecuador, the European Union, Hong Kong, China, Indonesia, Israel, Japan, Korea, Malaysia, Mexico, Norway, the Russian Federation, Singapore, Switzerland, Thailand, Türkiye, United Arab Emirates, the United Kingdom, Venezuela, and Viet Nam reserved their third-party rights.
On 10 December 2024, China requested the Director-General to compose the panel. On 19 December 2024, the Director-General composed the panel.