Taiwan said it would continue talks with the EU following the bloc’s request for dispute settlement consultations regarding the country’s offshore wind policy.
The European Commission’s Directorate General for Trade issued a statement on Friday announcing that the EU has officially requested dispute settlement consultations at the WTO concerning Taiwan’s requirement that wind power developers use a certain percentage of locally manufactured components in their projects.
“In the view of the EU, Taiwan’s local content eligibility and award criteria in energy capacity allocation auctions for offshore wind farms are inconsistent with its WTO commitment to not discriminate against imported goods and services,” the statement said.
Photo: Reuters
The dispute settlement consultations are the first step in WTO dispute settlement proceedings, the statement added.
The Ministry of Economic Affairs said in a statement that a WTO member can request dispute settlement consultations over the other side’s trade policies following bilateral talks.
The ministry said it has 10 days to reply to the request, per WTO rules.
It did not specify whether it would agree to consultations, only that the ministry would continue to work with the Executive Yuan’s Office of Trade Negotiations, and continue discussions with the EU.
“Our foreign mission has been tasked with discussing concerns over the policy with the EU,” the ministry said.
However, Minister of Economic Affairs J.W. Kuo (郭智輝) had already said that Taiwan would relax its local content criteria for wind farm projects, the ministry added.
The nation’s local content criteria are not trade protectionism, an economic official said, adding that when evaluating Taiwan’s requirements, it was necessary to consider the nation’s geopolitical situation, as national and energy security need to be considered and the “red supply chain” avoided.
The “red supply chain” refers to one featuring Chinese companies.
Other countries such as Japan and Canada had similar regulations when their wind power industry was emerging and adjusted measures as they went along, the official said, adding that Taiwan would likely relax its requirements.
The official said imports would be allowed, following reviews, if developers found that the cost of domestically made products exceeded foreign alternatives by a certain percentage, or if the production capacity of domestic manufacturers was restricted.
“If [the dispute settlement consultations] do not lead to a satisfactory solution within 60 days, the EU can request that the WTO set up a panel to rule on the matter,” the European Commission’s Directorate General for Trade said.
As the EU and Taiwan have a “close and productive relationship,” the bloc said it hopes a mutually satisfactory solution can be found during the consultations.
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