TALKING POINT: In show of strength, US challenges India’s solar policy

The US had, in 2013, brought a complaint against India before the World Trade Organisation (WTO), alleging violation of global trading rules through the domestic content requirement clause under India’s national solar programme launched in 2010. It mandates that a solar power producer compulsorily source a certain percentage of solar cells and modules from local manufacturers in order to be able to benefit from the government guarantee to purchase the energy produced. Noting that the US has focused in particular on bringing cases which have broad, systemic benefits, Froman said the USTR had filed as many as 24 cases against other countries before the WTO. Of these 24 cases, 15 have targeted China’s unfair policies that are also disallowed by WTO, ranging from illegal barriers to auto imports, agricultural subsidies to grain producers, discriminatory taxes, barriers to services trade, and barriers to US exports of high-tech steel, he added. A WTO panel ruled last year that India’s domestic content requirement for the solar sector is inconsistent with its treaty obligations. Ironically, America and the European Union themselves have taken anti-dumping measures against cheaper Chinese solar panels in order to protect their own industries. India expected to add around 5.5 gigawatt (GW) of solar capacity in 2016, making it the fourth-largest solar market globally.