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India lost Solar case against US at WTO

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India has lost a case against the United States (US) at World Trade Organization (WTO) as the Dispute Settlement Body (DSB) of WTO ruled that India’s domestic content requirements under its ambitious solar power programme Jawaharlal Nehru National Solar Mission (JNNSM) were inconsistent with the international trade norms.

However, as per the officials, India will now approach the appellate body of WTO against the dispute panel’s ruling.

Background:

Last year, the US dragged India to WTO on country’s solar mission plan. The US alleged that India’s programme appears to discriminate against the US solar equipment by requiring solar energy producers to use locally manufactured cells and by offering subsidies to those developers who use domestic equipment.

Significance:

In 2010, India launched its national solar policy – Jawaharlal Nehru National Solar Mission (JNNSM) and set an ambitious target of generating 20,000MW of solar power by 2022. US companies manufacturing solar equipment are looking at this as a big business potential and because of that, they want India to remove the clause of local content requirement.

Most significantly, with this India has now lost for the second time in a case against US. In earlier, India lost a case against its ban on import of poultry meat, eggs and live pigs from US when WTO ruled that as inconsistent with international trade norms.

Key Points to Remember:

  • WTO Membership – 161 member states
  • WTO Director General – Roberto Azevêdo
  • WTO Head Quarter – Geneva, Switzerland