The European Union and Taiwan have reached an agreement in their World Trade Organization (WTO) dispute concerning Taiwan's offshore wind auction policies. The settlement outlines steps to address the EU's concerns regarding local content rules that appeared to favor Taiwanese products and services over imported ones, potentially violating WTO non-discrimination regulations.
Following WTO consultations requested by the EU, European Commission Trade Director-General Sabine Weyand and Taiwan's Minister of Economic Affairs Jyh-Huei Kuo exchanged letters detailing the new terms. Taiwan has agreed to introduce more flexibility for European and other international developers in the winning projects from the latest auction. Additionally, Taiwan has committed to removing localization requirements from future offshore wind auctions, both in eligibility conditions and award criteria.
The EU stated that, provided Taiwan adheres to these commitments, it would not pursue further action in the WTO. According to the bloc, resolving these trade barriers is essential for the offshore wind sector, a key area for the EU with an annual turnover of €60 billion and employment of around 300,000 in 2022. Under the REPowerEU initiative, the EU projects wind energy employment to grow to 936,000 by 2030.
Both the EU and Taiwan expressed an intention to continue cooperation to ensure the full implementation of this agreement.
