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India wins Renewable energy case against US at WTO

Panel upholds India’s claims that renewable energy subsidies in eight American states violated a core global trade rule. The renewable energy sector win may help India in settling other disputes with the US

A series of U.S. renewable energy incentives violated international trade rules, according to the World Trade Organization, threatening to stoke tensions between the two countries.

The WTO supported most of India’s allegations that the US imposed illegal domestic content requirements that favored domestic products in the renewable energy sector, according to a ruling published on the Geneva-based organization’s website.

Solar Investments In Q1 2019 Over $2.8 Billion, 12% Lower Than Q1 2018.

India had stated that the measures are inconsistent with global trade norms because they provide less favourable treatment to imported products than to like domestic products, and because the subsidies are contingent on the use of domestic over imported goods.

The ruling of dispute panel can be challenged in WTO’s appellate body which is part of the dispute settlement mechanism of the Geneva-based multilateral body. The ruling comes at a time when there are trade tensions between the two countries.

The U.S. has rolled back export incentives from India under its GSP programme and New Delhi has imposed higher customs duties on 28 American products.

The two countries are also at loggerheads on a number of other disputes at the WTO. The U.S. has challenged certain export promotion schemes of India, while India has challenged U.S.’s unilateral hike on customs duties on certain steel and aluminium products.

Reference: TH, Live Mint, BS


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