The World Trade Organisation’s Dispute Settlement Body (DSB) has agreed to India’s request for setting up a panel to determine whether the country complied with a previous ruling striking down its domestic content requirements for solar cells and modules.

India had requested a panel following a submission made by the US where it had accused New Delhi of not complying with the ruling and also sought permission to take retaliatory action.

The first request for a panel was struck down by the US on February 9, but the DSB, in its meeting on Wednesday, agreed to India’s second request as WTO rules don’t allow a blockage more than once.

“India reiterated that it has complied with the findings of the panel and the Appellate Body in the dispute over domestic content requirements for solar cells and modules, and that the logical course for disagreements over whether a member has complied with a WTO ruling is recourse to compliance panel proceedings,” said a Geneva-based trade official.

US stands its ground

The US, on its part, once again declared that India has no basis for asserting compliance with the ruling and that it continues to apply the WTO-inconsistent measures.

The US also said it reserved its right to move forward with its request for WTO authorisation to take countermeasures, the official added.

The countermeasures would consist of suspension of tariff concessions and related obligations (including most-favoured-nation obligations) on a list of products of India, to be drawn from the harmonised tariff schedule of the US, the country had earlier said.

The European Union, Singapore, South Korea, China, Canada, Japan, Chinese Taipei, Indonesia, Norway and Russia reserves their third-party rights to participate in the panel proceedings.

India has said it has brought about changes in rules and procedures under the Jawaharlal Nehru National Solar Mission, and power-purchase agreements no longer mandated domestic sourcing of cells and modules.

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