The WTO Dispute Settlement Body agreed on September 25 to set up a panel to examine Russia's complaint against the EU Carbon Border Adjustment Mechanism. Russia argues CBAM creates trade barriers for covered goods and says free allocation of ETS emissions allowances acts as an export subsidy that gives European industry an edge. The EU rejects both claims and says it will defend the measures in the dispute process. The panel was formed after a second Russian request, following EU objections at the July DSB meeting. The same meeting also delayed action on a China-Turkey EV dispute report and saw members again fail to break the deadlock over Appellate Body appointments. The next DSB meeting is scheduled for October 27, 2026.
