WTO solar issue: EU's submissions in support of US

The European Union (EU) is the third party at the WTO with regard to India's dispute with the US on a solar power programme and has made submissions against the country at the Geneva-based body, Parliament was informed today.
The US had filed a case in the WTO alleging that India's Jawaharlal Nehru National Solar Mission (JNNSM) appears to discriminate against US solar equipment by requiring solar energy producers to use locally manufactured cells and by offering subsidies to those developers who use domestic equipment.
"The European Union (EU) is a third party in this WTO dispute on JNNSM programme. As a third party, the EU has made its submissions before the WTO panel in support of the US and against India's domestic content requirements," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.

She also said that WTO is likely to circulate the WTO panel ruling in the dispute concerning domestic content requirement of solar cells and modules in some tenders under the JNNSM, by September/October.
"The US has claimed that the domestic content requirement clause appears to be inconsistent with GATT 1994 (General Agreement on Tariffs and Trade) and TRIMS (Trade-Related Investment Measures) Agreement of WTO. India has defended its claim in WTO as per the provisions contained under...GATT 1994," she said.
Replying to a separate question, she said there are proposals for product specific approach in the rules of origin negotiations with Australia and Regional Comprehensive Economic Partnership (RCEP) countries.

The RCEP, which is mega trade deal under negotiations, comprises 10 ASEAN members and its six free trade agreement partners -- India, China, Japan, Korea, Australia and New Zealand.
She said that the general rules of origin under some of India's existing free trade agreements in the South Asian Free Trade Area and with ASEAN, Japan and Korea stipulate a 30-40 per cent value addition and a change in a tariff classification.