Solar power: India loses WTO appeal

Geneva, September 16

India today lost its appeal at the World Trade Organisation (WTO) in a dispute over solar power, failing to overturn a US complaint that New Delhi had discriminated against importers in the Indian solar power sector. The ruling came just days after India lodged a complaint against subsidies to the solar industry in eight US states.

(Follow The Tribune on Facebook; and Twitter @thetribunechd)

The judges upheld an earlier ruling that found India had broken WTO rules by asking solar power developers to use Indian-made cells and modules. “This report is a clear victory for American solar manufacturers and workers and another step forward in the fight against climate change,” US trade representative Michael Froman said.

The judges said India could not claim exemption on the plea that solar goods were in short supply or on the grounds of ensuring ecologically sustainable growth or combating climate change.

Under WTO rules, countries are not allowed to discriminate against imports and favour local producers.

“We strongly support the rapid deployment of solar energy worldwide, including in India. But local content requirements are not only contrary to WTO rules, but actually undermine our efforts to promote clean energy by requiring the use of more expensive and less efficient equipment,” Froman  said. — PTI