CHINESE TAIPEI – MEASURE RELATING TO INVESTMENTS IN OFFSHORE WIND INSTALLATIONS REQUEST FOR CONSULTATIONS BY THE EUROPEAN UNION
Document: REQUEST FOR CONSULTATIONS BY
Date: 31 July 2024
Document codes: WT/DS625/1; G/TRIMS/D/48; G/L/1532; S/L/548
Complainant: EU
Respondent: Taiwan
Dispute stage: Consultation
Agreements cited: Art. XVII  Services (GATS)Art. III:4  GATT 1994Art. 2.1  Trade-Related Investment Measures (TRIMs)

CHINESE TAIPEI – MEASURE RELATING TO INVESTMENTS IN
OFFSHORE WIND INSTALLATIONS
REQUEST FOR CONSULTATIONS BY THE EUROPEAN UNION
The following communication, dated 26 July 2024, from the delegation of the European Union to the
delegation of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, is circulated to
the Dispute Settlement Body in accordance with Article 4.4 of the DSU.

My authorities have instructed me to request consultations with the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu ( "Chinese Taipei ") pursuant to Articles 1 and 4 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes, Article XXII:1 of the
General Agreement on Tariffs and Trade 1994 ( "GATT 1994 "), Article 8 of the Agreement on
Trade-Related Investment Measures ("TRIMs Agreement"), and Article XXII:1 of the General
Agreement on Trade in Services ("GATS"), with respect to Chinese Taipei's measure relating to local
content requirements in investments in off-shore wind installations.
1. THE MEASURE AT ISSUE
Chinese Taipei has put in place an energy transition plan to change its underlying fuel mix into 20%
of electricity generated by renewable sources, 30% from coal, and 50% from natural gas by 2025.
With this objective, it started in 2013 to develop offshore wind generation capabilit ies via capacity
allocation rounds. In each round, investors are bidding to develop offshore windfarms up to the
maximum allocated generation capacity.
Three allocations rounds have been launched so far. The third one , in the course of which Chinese
Taipei intends to allocate 15 GW in total through consecutive auctions (so called "phases") up to
2030, was initiated on 24 July 2021. The first auction under the third round – "phase 3.1" – took
place in 2023, awarding a total of 3GW of capacity. On 23 November 2023, Chinese Taipei announced
the selection mechanism for the second auction under round 3 – "phase 3.2" –, offering up to 3GW
of capacity. The application window to participate in the auction of phase 3.2 closed on 10 April 2024.
The projects are envisaged to be commissioned between 2028 and 2029.
The measure at issue, including its adoption, maintenance, application and administration by
Chinese Taipei, consists in the localisation requirements included in the governance framework of
phase 3.2 and in particular:
- requiring developers to commit, in their auction bids, to a minimum degree of "localisation"
(i.e. local content) to be eligible to participate in the auction;
- using the degree of localisation committed by bidders as a tiebreaker in the award procedure,
meaning that out of two or more otherwise equivalent bids, the bid with the highest degree
of localisation is favoured; and
- contractually binding successful bidders to achieving the committed degree of localisation
during the implementation and operation of their windfarm projects, and subjecting them to
contractual penalties if the committed degree of localisation is not achieved.
WT/DS625/1 • G/TRIMS/D/48 • S/L/548 • G/L/1532

2. LEGAL AND OTHER INSTRUMENTS RELEVANT TO THE MEASURE AT ISSUE
The measure at issue is put in place, evidenced by, implemented and administered through,
inter alia, the following legal and other instruments, considered alone and in any combination, as
well as through their practical application by the relevant authorities:
- Electricity Act1,
- Registration Rules for Electricity Industry2,
- Renewable Energy Development Act3,
- Regulations governing the Establishment of Renewable Energy Power Generation Facilities4,
- Press note: Ministry of Economic Affairs ( "MoEA") announces the selection mechanism for
the second phase of zonal development, inviting outstanding developers to move forward
together5,
- MoEA Order No.11258025270: Directions for Allocating Installed Capacity of Offshore Wind
Potential Zones6,
- MoEA Announcement: Announcement of Industrial Relevance Policies for Offshore Wind
Power Zonal Development (Phase 2: Applicable to those Completed and Connected in
2028-2029)7,
- Offshore Wind Power Zonal Development (Phase II) Industrial Relevance Policy (Industrial
Development Administration, MoEA)8,
- Offshore Wind Power Zonal Development Phase II Capacity Allocation Plan (Industrial
Relevance Execution Plan) - Writing instructions9,
- MoEA Announcement: Offshore Wind Power Zonal Development Contract Template (Phase
2: Completed and Connected in 2028-2029)10,
- Offshore Wind Power Zonal Development Contract (Phase 2: Completion of Grid Connection
in 2028 to 2029) – Contract template (MoEA)11,

1 電業法as amended on 28 June 2023;
https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=J0030011.
2 電業登記規則, as amended on 21 June 2023;
https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=J0030012.
3 再生能源發展條例as amended on 21 June 2023;
https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=J0130032.
4 再生能源發電設備設置管理辦法, as last amended on 4 January 2024;
https://law.moj.gov.tw/LawClass/LawAll.aspx?pcode=J0130041.
5 經濟部公告區塊開發第2期選商機制，遴選優秀開發業者一起再向前行, published on 23 November 2023;
https://www.moeaea.gov.tw/ECW/populace/news/News.aspx?kind=1&menu_id=41&news_id=33615.
6 離岸風力發電區塊開發場址容量分配作業要點, published on 23 November 2023;
https://www.moeaea.gov.tw/ECW/populace/news/wHandNews_File.ashx?file_id=27805.
7 經濟部公告：公告本部離岸風力發電區塊開發產業關聯政策(第二期：中華民國一百一十七年及一百一十 八年完
工併聯者適用), published on 19 December 2023;
https://www.ida.gov.tw/ctlr?PRO=policy.rwdPolicyView&id=11981.
8 離岸風力發電區塊開發(第二期)產業關聯政策, published on 19 December 2023;
https://www.ida.gov.tw/ctlr?PRO=filepath.DownloadFile&f=policy&t=f&id=10546.
9 離岸風力發電區塊開發容量分配計畫書(產業關聯執行方案)撰寫說明, published on 19 December 2023;
https://www.ida.gov.tw/ctlr?PRO=filepath.DownloadFile&f=policy&t=f&id=10547.
10 經濟部公告離岸風力發電區塊開發契約書範本, published on 16 January 2024;
https://www.moeaea.gov.tw/ecw/populace/Law/Content.aspx?menu_id=26308.
11 離岸風力發電區塊開發契約書 (契約範本), published on 16 January 2024;
https://www.moeaea.gov.tw/ECW/main/Law/wHandEditorFile.ashx?file_id=13067.
WT/DS625/1 • G/TRIMS/D/48 • S/L/548 • G/L/1532

- Any other instruments through which Chinese Taipei implements and administers the
measure at issue, including letters, circulars or other documents whereby requests are
made, decisions are communicated and/or instructions are imparted; whether between
Chinese Taipei authorities or to individual or groups of companies directly or indirectly
involved in phase 3.2 for offshore wind energy generation projects, as described above.
This Request also covers any annexes, appendixes, attachments or schedules to the instruments
listed above, as well as any amendments, supplements, replacements, renewals, extensions,
implementing measures or any other related measures.
3. LEGAL BASIS FOR THE COMPLAINT
The measure at issue appears to be inconsistent with Chinese Taipei's obligations under GATT 1994,
the TRIMs Agreement, and GATS, in particular as regards:
- Article III:4 of GATT 1994, inasmuch as the measure at issue requires and incentivises
applicants to commit to using, and in case they are successful in the auction, to effectively
use, a significant level of Chinese Taipei domestic products in their windfarm projects,
thereby according less favourable treatment to imported products than to like domestic
products;
- Article 2.1 of the TRIMs Agreement, inasmuch as the measure at issue requires and
incentivises EU investors to commit to using, and in case they are successful in the auction,
to effectively use, a significant level of Chinese Taipei domestic products in their windfarm
projects, thereby constituting a trade related investment measure inconsistent with the
national treatment obligation provided for in Article III:4 of GATT 1994; and
- Article XVII of GATS, inasmuch as the measure at issue requires and incentivises applicants
to commit to using, and in case they are successful in the auction, to effectively use , a
significant level of Chinese Taipei domestic content, including in the context of the supply of
certain services, thereby according less favourable treatment to foreign services than to like
domestic services.
The measure identified in this Request appears to nullify or impair the benefits accruing to the
European Union directly or indirectly under the covered agreements. The European Union reserves
the right to address additional measures and claims, including under other provisions of the covered
agreements, regarding the above matters during the course of the consultations.
The European Union looks forward to receiving Chinese Taipei's reply to this request and expresses
its readiness to consider a mutually convenient date and place for the consultations.