India beats U.S. at WTO in renewable energy case

  1. India has won a major trade dispute against the United States at the World Trade Organization(WTO).
  2. The WTO dispute resolution panel has ruled that US domestic content requirements and subsidies provided by eight of its states in the renewable energy sector are violative of global trade norms.
  3. The panel concluded in its ruling that the measures of the US are inconsistent with certain provisions of the General Agreement on Tariffs and Trade(GATT).
  4. In September 2016,India had dragged the U.S. to WTO’s dispute settlement mechanism over US domestic content requirements and subsidies provided by eight states in the renewable energy sector.
  5. India had argued that some of the renewable energy programmes administered by the US states violated core provisions in the Trade related Investment Measures(TRIMS) agreement by insisting mandatory domestic content requirements.
  6. India has also said that the programmes implemented by the US states in the renewable energy sector violate the national treatment provision under which foreign producers are required to be treated on a par with domestic producers.
  7. The ruling of dispute panel can be challenged in WTO’s appellate body which is part of the dispute settlement mechanism of the WTO.
  8. In 2014,the US had also launched a similar trade dispute against India’s Jawaharlal Nehru Solar Energy Mission claiming that it included incentives for domestically produced solar cells and modules.The WTO’s Appellate Body had upheld the US complaint against India.
  9. Further,the two countries are also at loggerheads on a number of other disputes at the WTO.The U.S has challenged certain export promotion schemes of India while India has challenged U.S unilateral hike on customs duties on certain steel and aluminium products.

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