Giving the US a taste of its own medicine, India filed a dispute at the World Trade Organization (WTO) challenging domestic content norms and subsidies in several renewable energy programmes run by eight of the country’s States.
India has requested consultations with the US under the dispute-settlement mechanism over alleged mandatory local sourcing requirements being followed by Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware and Minnesota, a WTO official said.
“We have been preparing to file a case against the US on the domestic content norms being followed by the eight States in renewable energy for the last few months. The delay has been mainly because the US wanted to have some discussions on the issue with us. But we are now sure that this matter cannot be resolved outside the WTO,” a senior Indian government official told
India has told the WTO that the US’ domestic content requirements are inconsistent with WTO rules as they favour domestic products over imported goods, and that the subsidies are contingent on such advantage to local equipment.
Interestingly, New Delhi is engaged in a similar dispute with the US on the latter’s complaint on domestic content norms under the Jawaharlal Nehru National Solar Mission for solar cells and modules.
In February this year, a WTO panel issued a ruling in favour of the US, which India appealed against in April. The appellate body is expected to issue its ruling on India’s appeal later this week.
India and the US will now have 60 days to reach a satisfactory solution to the problem through consultations, failing which New Delhi may request the setting up of a panel to settle the dispute.