The United States launched another trade complaint against India on Monday, saying New Delhi’s solar energy industry discriminates against American manufacturers.
The US contends that India is violating World Trade Organisation (WTO) rules by requiring suppliers for its national solar power programme to use Indian-manufactured solar cells instead of US equipment.
“This kind of discrimination is against WTO rules and we’re determined to stand up for US workers and businesses,” said US Trade Representative, Michael Froman.
Washington lodged a similar complaint with the WTO over India’s solar programme last February and the new challenge only highlights how important India’s solar market is for US exports.
According to American officials India is the second largest foreign market for the US solar energy industry after Japan.
Before the local content requirements were introduced in 2011 exports totalled 119 (m) million US dollars, but have fallen since then.
The South Asian nation is looking to increase its use of solar power twenty-fold by 2020 under its so-called National Solar Mission.
Last February, the US held dispute consultations with India over the first phase of that programme but the US says its concerns weren’t addressed.
It is now seeking fresh consultations over the programme’s second phase, approved by India’s Cabinet in October, that’s been expanded to include thin film technology which comprises the majority of US solar product exports to India.
The case also adds to an increasingly fraught relationship between the US and India, which was strained by the recent arrest and strip-search of an Indian diplomat.
US officials say the trade case was in the works long before the December arrest of India’s deputy consul general in New York, Devyani Khobragade, who was accused of visa fraud and under-paying her maid.
In a compromise, Khobragade was indicted then deported in January, and both governments say they want to repair the relationship.
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Post time: Jun-16-2017