The WTO’s Dispute Settlement Body agreed to establish a panel to review Russia’s challenge to the EU’s Carbon Border Adjustment Mechanism (CBAM) and a related claim of export subsidies tied to the EU emissions trading system.

India is among 18 countries that reserved third-party rights, allowing participation in the proceedings without acting as a principal complainant or respondent, with other participants including Argentina, Brazil, Canada, China, Japan, the UK, the US and several others.

The EU dismisses Russia’s action as extraordinary, tied to Moscow’s war against Ukraine, and says it will participate to defend the rules-based multilateral trading system.

The next regular WTO Dispute Settlement Body meeting is scheduled for late October 2026.

DSB discussions included information sessions on dispute settlement reform, focusing on history, activity trends, and reforms following the latest ministerial conferences to preserve institutional memory.

Becoming third parties will enable India to observe both sides and present views without becoming a principal party, aiding monitoring of developments.

This third-party status helps India understand the issues from both sides and contributes to its ability to monitor proceedings.

The next step is a DSB meeting to decide whether a panel will be established and to set submission timelines.

India is seeking recognition for its NABCB and local verification agencies in relation to CBAM implementation.

CBAM, launched in early 2026, targets imports of carbon-intensive goods and requires importers to declare embedded emissions and pay a levy if thresholds aren’t met.

China and Turkey requested extra time to consider a panel report in their dispute over electric vehicles, with the DSB delaying a decision to 27 October 2026.