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US takes India back to WTO in solar power dispute for non-compliance

The United States had complained to the WTO in 2013, saying that India's solar programme was discriminatory and U.S. solar exports to India had fallen by 90 percent from 2011

Reuters  |  GENEVA 

PE investment in wind, solar up 47% in 2017

has failed to comply with a ruling on solar power, the will tell the WTO's dispute settlement body (DSB) next month, triggering a fresh round of litigation, according to an agenda issued on Wednesday.

Renewable has become a hot area of trade friction as major economies compete to dominate a sector that is expected to thrive as reliance on coal and dwindles.

unveiled its national solar programme in 2011, seeking to ease shortages in Asia's third-largest economy without creating pollution.

But the complained to the in 2013, saying the programme was discriminatory and U.

S. solar exports to had fallen by 90 percent from 2011.

The won the case last year, when appeals judges ruled had broken the trade rules by requiring solar power developers to use Indian-made cells and modules.

Such "local content" requirements are banned because they discriminate in favour of domestic firms and against foreign competitors.

Under an agreement with the United States, had until Dec. 14 to comply with the ruling and it told the DSB last week that it had done so.

"Indian authorities have held extensive internal stakeholder consultations since the adoption of the rulings and recommendations of the DSB to fully comply with them," said in its statement to the DSB.

"Accordingly, in compliance with the findings and recommendations of the DSB in this dispute, has ceased to impose any measures as found inconsistent in the DSB's findings and recommendations."

But an agenda for the DSB's next meeting on Jan. 12 showed the plans to raise the dispute again, citing rules on non-compliance with trade rulings.

If is found not to have complied, could ask the for permission to impose trade sanctions on But the dispute system is struggling to process a large number of highly complex disputes, so the legal process is likely to continue for a year or more.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, December 20 2017. 16:59 IST
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