US challenges India`s solar export restrictions, alleges it`s discriminatory
The US on Monday challenged the domestic content requirement of India`s solar mission, which it alleged is discriminatory and against international norms, including WTO laws.
|Last Updated: Feb 11, 2014, 06:35 AM IST|Source: PTI
Washington: The US on Monday challenged the domestic content requirement of India`s solar mission, which it alleged is discriminatory and against international norms, including WTO laws, and badly affects the American domestic solar panel manufacturing industry.
As the US Trade Representative, Mike Froman, announced his decision, officials argued that they have been forced to take a measure so as to protect some American 10,000 jobs in its solar industry and to have a significant pie in the second largest solar market of the world.
Froman said the US has requested WTO dispute consultations with India concerning domestic content requirements in Phase II of India`s Solar Mission.
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, Froman said.
"These domestic content requirements discriminate against US exports by requiring solar power developers to use Indian-manufactured equipment instead of US equipment. These unfair requirements are against WTO rules, and we are standing up today for the rights of American workers and businesses," Froman alleged.
"We also take this action in support of the rapid global deployment of renewable energy. 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," Froman told reporters at a news conference.
He said in October 2013, India`s cabinet approved measures governing the implementation of Phase II of the its National Solar Mission (NSM). For solar projects under Phase II, India is again imposing domestic content requirements, under which solar power developers must use Indian-manufactured solar cells and modules instead of US or other imported equipment.
Moreover, the Phase II domestic content requirements have been expanded to cover thin film technology, which was exempt from such requirements under Phase I. As thin film currently comprises the majority of US solar product exports to India, these domestic content requirements are likely to cause even greater harm to US producers than under Phase I, the top US official said.
A request for consultations is the first step in the WTO dispute settlement process, and consultations are intended to help parties find a solution at this stage. Under WTO rules, if the matter is not resolved through consultations within 60 days of the request, the US may ask the WTO to establish a dispute settlement panel.
Froman said before going public, the US has informed the Indian Government officials in Delhi, Geneva and Washington. There was no initial response from India.
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
Cookies Setting
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device and the processing of information obtained via those cookies (including about your preferences, device and online activity) by us and our commercial partners to enhance site navigation, personalise ads, analyze site usage, and assist in our marketing efforts. More information can be found in our Cookies and Privacy Policy. You can amend your cookie settings to reject non-essential cookies by clicking Cookie Settings below.
Manage Consent Preferences
Strictly Necessary Cookies
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work or you may not be able to login.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They are also used to limit the number of times you see an advert as well as help measure the effectiveness of an advertising campaign. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we may not know when you have visited our site, and may not be able to monitor its performance.