Solar Power Case: US wins WTO dispute against India

The panel upheld US’ clam and said that the India’s domestic requirements action is inconsistent with various articles of TRIMS and GATT The Dollar Business Bureau

World Trade Organisation’s (WTO) dispute panel on Wednesday concluded in favour of US and said under India’s National Solar Mission, New Delhi is violating international trade rules through domestic content restriction measures (DCR) and discriminating against imported solar cells and modules. The panel upheld the US’ clam and said that the India’s domestic requirements action “are inconsistent with Article 2.1 of the TRIMS (Trade-Related Investment Measures) and Article III:4 of the GATT (General Agreement on Tariffs and Trade) 1994”. Three years ago, in 2013, US had requested consultations with India with regards to its concern with domestic content requirements under “Phase I” of the Jawaharlal Nehru National Solar Mission (NSM) for solar cells and solar modules. In February 2014, the US requested supplementary consultations with regards India’s DCR under “Phase II” of the NSM. At the request of the US, in September 2014, WTO composed a panel. The three member panel was chaired by the Former Ambassador of New Zealand to WTO David Walker and included Pornchai Danvivathana from Thailand, and Marco Tulio Molina Tejeda, Deputy Permanent Representative of Guatemala to WTO. Post WTO’s judgement US Trade Representative Michael Froman said the outcome is important and has implications beyond this dispute, and would send a message to other countries considering discriminatory localisation polices. ““As we made clear when we launched this dispute, the Obama Administration is committed to strengthening the clean energy sector and the millions of jobs it supports here in America and all over the world. Trade enforcement is critical for ensuring that world-class U.S. clean energy goods and services can compete on an equal footing around the world for the benefit of American workers and manufacturers, foreign consumers and the global environment”, he added further. “This win underscores not just how aggressive and successful the Obama Administration has been in terms of enforcing our current trade agreements, but also the resolve with which we will enforce the high standards negotiated in TPP, whether it’s with regard to labor, intellectual property rights or the environment,” he said in an official press statement.

February 25, 2016 | 06:10pm IST

Related Topics:

The Dollar Business Bureau - Feb 25, 2016 12:34 IST

Solar Power Case: US wins WTO dispute against India

We like you just the way you are.