India’s request for a dispute settlement panel against the USA for incentivising use of domestic over imported goods in its renewable energy programmes was taken up by the World Trade Organisation.
The move, however, was blocked by the US, which said that it had not flouted norms.
India has argued that the domestic sourcing measures in the renewable energy programmes in eight US States go against various agreements of the WTO including the ones on Subsidies and Countervailing Measures (SCM) and the TRIMS as they encourage the use of domestic inputs through sops and discriminate against imports.
Last year, a panel ruled against mandatory domestic sourcing of solar panels and solar modules under New Delhi’s national solar power generation programme — the ambitious Jawaharlal Nehru National Solar Mission.
India’s dispute is regarding alleged domestic content requirements and subsidies, such as tax credits, provided by eight US states — Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware and Minnesota.