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A service for auto industry professionals · Monday, May 19, 2025 · 814,157,787 Articles · 3+ Million Readers

Russia initiates WTO dispute regarding EU’s carbon border adjustment and emissions trading

Russia refers to Regulation (EU) 2023/956, establishing the Carbon Border Adjustment Mechanism, as well as delegated and implementing acts and other related documents, and to Directive 2003/87/EC establishing a scheme for greenhouse gas emissions allowances trading within the EU. Russia claims the measures  are inconsistent with the EU's obligations under various provisions of the General Agreement on Tariffs and Trade (GATT) 1994; the Agreement on Import Licensing Procedures; the Agreement on Subsidies and Countervailing Measures; and the Protocols of WTO Accession of Bulgaria, Croatia, Estonia, Latvia, and Lithuania.

Further information is available in document WT/DS639/1.

What is a request for consultations?

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

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