Additional tax creates crisis: China files complaint against Turkey with the World Trade Organization
The People's Republic of China has filed a complaint against Turkey with the World Trade Organization (WTO) due to additional taxes imposed on imported automobiles. China stated that it finds some of Turkey's import policies to be in violation of WTO rules.
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Turkey imposed additional taxes on all vehicles imported from China last June.
In addition, plug-in hybrid vehicles were included in the scope of the additional tax in September. While the regulations in question drew reactions from Chinese manufacturers that have reached high sales figures in Turkey, the Chinese state has also taken action.
The Chinese Ministry of Commerce has filed a complaint against Turkey with the World Trade Organization (WTO) due to the new additional taxes.
THEY FILED A COMPLAINT WITH THE WTO
A spokesperson for the Chinese Ministry of Commerce argued that Turkey has taken 'discriminatory measures' due to the additional customs duties imposed on plug-in hybrid vehicles and filed a complaint with the World Trade Organization (WTO). China claimed that Turkey has violated WTO rules. While the ministry described the additional taxes as a 'typical protectionist measure,' it demanded that Turkey comply with its WTO obligations and 'immediately correct its erroneous practices.'
PROCESS WILL PROCEED WITH CONSULTATIONS
The WTO will examine the trade dispute upon China's complaint. The WTO, which has initiated the 'dispute settlement mechanism' process, is expected to conduct 'consultations' (a process of seeking opinions).