To take your ideas to Policymakers, Join the Campaign of #PolicyPulse Write to feedback@policypulse.com

WTO body rejects India's domestic content stipulation

Solar dispute started from a complaint lodged by the US against India in 2013 for violation of global trading rules

Policy Pulse
Publish Date: Sep 17 2016 1:08PM | Updated Date: Sep 17 2016 1:09PM

WTO body rejects India's domestic content stipulation

 The World Trade Organisation (WTO) appellate body has sustained a previous ruling against India's domestic content requirements for manufacturing solar cells and modules, the WTO said in Geneva.

 
Solar dispute started from a complaint lodged by the US against India in 2013 for violation of global trading rules. 
 
This year, a WTO dispute settlement panel had stated that India's domestic content requirement (DCR) for the solar sector is varying with its treaty obligations. 
 
Pointing out findings of the appellate body report, WTO said: "The Panel sustained the United States' claims that India's DCR measures are inconsistent with WTO non-discrimination obligations under Article III:4 of the GATT 1994 and Article 2.1 of the TRIMs Agreement”.
 
"The Panel also found that the measures are not covered by the government procurement exemption under Article III:8(a) of the GATT 1994, because the product being procured (electricity) was not in a 'competitive relationship' with the product discriminated against (solar cells and modules)."
 
The national treatment duties required India to treat imported solar cells and modules equally  with domestically produced products without any discrimination under Article III:4 of the GATT 1994.
 
The highest adjudicating body for global trade disputes decided with the panel that India's domestic content requirements for solar cells and modules under the Jawaharlal Nehru Solar Mission amounted to trade-related investment measures as they prefer domestic products ove