China filed a complaint against Turkey with the WTO over the extra tax imposed on Chinese automobiles.
According to the development in HaberTürk, Chinabrought the customs duties imposed by Turkey to the World Trade Organization (WTO). In the statement, it was noted that the main element of the complaint in question was the additional customs duties imposed by Turkey on automobiles imported from China. In the statement, “The discriminatory measure taken by Turkey is against WTO rules and is protectionist in nature. “We call on Turkey to comply with WTO rules and immediately correct its measures.” It was said. While China’s “request for consultation” submitted to the WTO draws attention as the first official step in a trade dispute, it is known that these disputes are generally resolved at this stage. Türkiye decided to impose an additional 40 percent customs duty on electric vehicles imported from China in March 2023. With the decree published in the Official Gazette in June 2024, the 40 percent additional tax previously imposed on electric cars of Chinese origin was valid for cars of all fuel types imported from China.
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The European Union recently decided to fully implement the extra tax on Chinese electric vehicles, which has been on the table for a long time. approved. Electric vehicles brought to Europe from China will face an extra customs duty of over 30 percent in addition to the 10 percent customs duty. Here, different tax rates are applied depending on the brand/company. For example, the extra tax burden of Tesla vehicles brought from China is 9 percent. BYD’s tax rate is announced as 17 percent, Geely’s as 19 percent, and SAIC’s as 36.3 percent. It is stated that brands that cooperate within the scope of the investigation face a 21.3 percent tax, while those that do not cooperate face a 36.3 percent tax.
As we said above, all these rates are added to the 10 percent tax that Chinese cars imported into the EU are currently subject to. The European Union implemented this extra tax, stating that Chinese manufacturers were distorting competition with the large state support they received. The Chinese administration and Chinese manufacturers, not surprisingly, react seriously to this situation. At the same time Germany also did not find the step taken correct and wanted to remove the extra customs duty or soften the conditions. However, the common decision was to impose taxes.
Germany, Europe’s largest in automobile production, He stated that the imposed customs duties could harm the success of German automobile manufacturers selling vehicles in China. In recent months, Chinese and European Union officials also met to discuss the extra tax. The Chinese administration wanted the new taxes to be canceled in these negotiations. However, no results were obtained on this issue. Let us note that extra taxes are applied to vehicles brought from China in Türkiye.