Washington told its WTO request is invalid

India, rated among the world’s largest green energy market, has rejected the United States claim on its solar power policies, seen as protecting local industry at the World Trade Organization hearing on 18 Jan 2018.

Washington had told WTO that India had failed to abide by a ruling that it had illegally discriminated against foreign suppliers of solar cells and modules.

Defending, India said it had changed its rules to conform with the ruling and that a US claim for punitive trade sanctions was groundless.

“India underscores that the United States’ request is not a valid request,” the Indian statement said at the WTO.

Washington had skipped legal steps, failed to follow the correct WTO procedure, and omitted to mention any specific level of trade sanctions that it proposed to level on India, leaving India “severely prejudiced”.

India would be vindicated if the proper process was followed, said the statement.

“In view of the above, India strongly objects to the US request of 19 December 2017,” it said.

Renewable energy has become an area of severe trade friction as major economies compete to dominate a sector that is expected to thrive as reliance on coal and oil dwindles.

India’s 2011 national solar programme seeks to ease chronic energy shortages in Asia’s third-largest economy without creating pollution.

But the United States complained to the WTO in 2013, saying US solar exports to India had fallen by 90 percent. The WTO judges agreed that India had broken the trade rules by requiring solar power developers to use Indian-made cells and modules.

In a separate move that could protect its solar industry from global competitors, not only US rivals, India told the WTO early January 2018 that it was considering the case for imposing temporary emergency tariffs on solar cells, modules and panels, after a petition from the domestic industry.

India initiated on 19 December 2017 a safeguard investigation on solar cells, whether or not assembled in modules or panels.

In the notification India indicated, among other things, as follows:

“All interested parties may make their views known within a period of 30 days from the date of the notice issued by the Director General (Safeguards) to:

The Director General (Safeguards)
Bhai Vir Singh Sahitya Sadan: 2nd Floor,
Bhai Vir Singh Marg,
Gole Market, New Delhi-110 001, INDIA.
Telefax: 011-23741542/23741537
E-mail: dgsafeguards@nic.in

All known interested parties including the known exporters in the subject countries, the Government of the subject countries through their Embassy in India, the importers and users in India have been addressed separately by the office of the Director General (Safeguards).

What is a safeguard investigation?
A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.

During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.

A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury. fii-news.com.