US challenges India's requirements affecting US solar products

US Monday said it has requested World Trade Organisation (WTO) dispute settlement consultations with India concerning domestic content requirements in Phase II of India's National Solar Mission(NSM).

"These domestic content requirements discriminate against US exports by requiring solar power developers to use Indian-manufactured equipment instead of US equipment," said US Trade Representative(USTR) Mike Fromann announcing the "trade enforcement action" against India.

"These unfair requirements are against WTO rules, and we are standing up today for the rights of American workers and businesses," he said.

"We also take this action in support of the rapid global deployment of renewable energy," he said. "These types of 'localisation' measures not only are an unfair barrier to US exports, but also raise the cost of solar energy, hindering deployment of solar energy around the world, including in India."

These domestic content requirements discriminate against US solar cells and modules by requiring solar power developers participating in Phase II to use Indian-manufactured solar cells and modules instead of US or other imported equipment, USTR said.

Moreover, India has now extended the domestic content requirements to more solar energy products than covered under Phase I of the NSM, it said.

(Arun Kumar can be contacted at arun.kumar@ians.in)