WTO dispute body agrees to Russia's panel request on EU carbon border levy
Russia says the levy discriminates against imports and the EU says its measures comply with WTO rules.
- On Friday, the World Trade Organization dispute settlement body agreed to Russia's request to establish a panel examining the European Union's Carbon Border Adjustment Mechanism. Formal proceedings will assess whether the levy breaches international trade rules.
- Russia first initiated this dispute last year, arguing the Carbon Border Adjustment Mechanism is discriminatory and protectionist. An initial request in July this year was unsuccessful, prompting the refiled request accepted on Friday.
- Claiming the Carbon Border Adjustment Mechanism imposes trade barriers on covered goods, Russia argues the European Union's Emissions Trading System allowances act as an export subsidy. This alleged advantage strengthens European competitiveness unfairly.
- The European Union expressed confidence its measures are compatible with World Trade Organization rules and confirmed participation in formal proceedings. Officials maintain the levy prevents carbon leakage and shields European industries.
- Beyond Russia, trading partners including Brazil, South Africa, and India have criticized the mechanism, arguing the policy penalizes developing economies. These concerns underscore friction surrounding the European Union's climate-focused trade strategy.
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India, 17 others reserve rights to join Russia’s CBAM dispute with EU as third party at WTO
Argentina, Brazil, Canada, China, Chinese Taipei, Indonesia, Japan, Saudi Arabia, South Korea, Malaysia, Norway, Paraguay, Singapore, Switzerland, Thailand, the UK and the US are other countries that have reserved their third-party rights in the dispute, the Geneva-based official said.
India reserves third-party rights in Russia-EU CBAM trade dispute in WTO: Official
Argentina, Brazil, Canada, China, Chinese Taipei, Indonesia, Japan, Saudi Arabia, South Korea, Malaysia, Norway, Paraguay, Singapore, Switzerland, Thailand, the UK and the US are other countries that have reserved their third-party rights in the dispute, the Geneva-based official said.
Following a request from Russia, the WTO’s Dispute Settlement Body (DSO) decided at its meeting on Friday to “establish a panel” to examine the EU’s carbon tax, as well as the European CO2 emissions trading system, the source indicated. In force since the beginning of 2026, the Border Carbon Adjustment Mechanism (CBAM) seeks to ensure that companies importing certain materials pay a price for the carbon to which European economic actors are alre…
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