India lost its appeal at the World Trade Organization (WTO) in a dispute over solar power.
The WTO’s appeals judges upheld an earlier ruling that found India had broken WTO rules by requiring solar power developers to use Indian-made cells and modules.
The appeal ruling is final and India will be expected to bring its laws into compliance with the WTO rules.
Background:
As in the earlier ruling, which was issued in February this year, the judges said India could not claim exemptions on the basis of that its national solar power sector was included in government procurement, nor on the basis that solar goods were in short supply.
There was also no justification on the grounds of ensuring ecologically sustainable growth or combatting climate change.
The dispute, which the United States first launched in February 2013, involved an increasingly common target of trade disputes – solar power, with an increasingly common complaint – local content requirements.
US solar exports to India have fallen by more than 90 percent since India brought in the rules.