Applauding a WTO pronouncement that India’s localisation rules on importing solar cells and modules are discriminatory, the US on Thursday said this sends a message to other countries considering localisation policies.
“This is an important outcome, not just as it applies to this case, but for the message it sends to other countries considering discriminatory 'localisation' policies,” US Trade Representatives (USTR) Mike Froman said.
Froman was commenting after the World Trade Organisation (WTO) dispute settlement panel ruled that India’s ‘localisation’ rules are discriminating against imported solar cells and modules under India's National Solar Mission.
The panel agreed with the US that India's domestic content requirements discriminate against US solar cells and modules by requiring solar power developers to use Indian-manufactured cells and modules rather than US or other imported solar technology in breach of international trade rules.
“On Thursday, the WTO panel agreed with the US that India's 'localisation' measures discriminate against US manufacturers and are against WTO rules,” he said adding that the US and India are strong supporters of the multilateral, rules-based trading system and take their WTO obligations seriously.
Forman said the US strongly supports the rapid deployment of solar energy around the world – including in India. “But discriminatory policies in the clean energy space in fact undermine our efforts to promote clean energy by requiring the use of more expensive and less efficient equipment, raising the cost of generating clean energy and making it more difficult for clean energy sources to be competitive,” he said.
“This win underscores not just how aggressive and successful the Obama administration has been in terms of enforcing our current trade agreements, but also the resolve with which we will enforce the high standards negotiated in TPP, whether it's with regard to labour, intellectual property rights or the environment,” Froman said. Earlier the US had challenged India's imposition of domestic content requirements for solar cells and modules under the National Solar Mission.