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Ruling against India, the WTO today said the government’s power purchase agreements with solar firms were “inconsistent” with international norms — a matter in which the US had filed a complaint before the global trade body, alleging discrimination against American firms.
The US had dragged India to the WTO on this issue in 2014, alleging that the clause relating to domestic content requirement (DCR) in the country’s solar power mission was discriminatory and “nullified” the benefits accruing to American solar power developers.
The WTO’s Dispute Settlement Panel has ruled that “the DCR measures are inconsistent” with relevant provisions of the TRIMs (Trade Related Investment Measures) Agreement and with the articles of the erstwhile General Agreement on Tariffs and Trade.
“This is an important outcome, not just as it applies to this case, but for the message it sends to other countries considering discriminatory localisation policies,” said US Trade Representative Michael Froman.
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