The European Union has requested dispute settlement consultations at the World Trade Organisation over Taiwan’s use of local content criteria for offshore wind projects.
The EU claims Taiwanese local content eligibility and award criteria in capacity allocation auctions are “inconsistent” with the Asian nation’s commitment under WTO rules to “not discriminate against imported goods and services”.
A statement issued by the bloc today (26 July) added: “Moreover, in discriminating against non-Taiwanese goods and services, the local content requirements mean efficiency losses and price increases, ultimately making the transition to a secure supply of renewable energy more difficult and costly and therefore hindering global climate ambitions.”
The request triggers a process that gives both parties up to 60 days to reach a satisfactory solution before the EU can ask the WTO to set up a panel to rule on the matter.