India wins trade dispute with US over solar-panel incentives

By
REW_WTO_HQ_Use

Bryce Baschuk, Bloomberg 

A series of U.S. renewable energy incentives violated international trade rules, according to the World Trade Organization, threatening to stoke tensions between the two countries as President Donald Trump prepares to meet Prime Minister Narendra Modi on Friday.

The WTO supported most of India’s allegations that the U.S. imposed illegal domestic content requirements that favored domestic products in the renewable energy sector, according to a ruling published on the Geneva-based organization’s website Thursday.

The ruling could further inflame U.S.-Indian tensions at a time when the two trade partners are engaged in an escalating tit-for-tat tariff battle. This month, India hiked duties on almost 30 U.S. products following the Trump administration’s decision to end a decades-old duty-free trade program aimed at supporting India’s economic development.

Trump said in a tweet Wednesday that he plans to discuss trade tariffs with Modi when the two meet at this week’s Group of 20 leader’s summit in Osaka, Japan.

I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high Tariffs against the United States, just recently increased the Tariffs even further. This is unacceptable and the Tariffs must be withdrawn!

— Donald J. Trump (@realDonaldTrump) June 27, 2019

The office of the U.S. Trade Representative didn’t immediately respond to a request for comment.

The programs in question largely deal with state and local level incentive programs aimed at encouraging U.S. businesses and consumers to install solar panels on their properties and use other renewable energy resources like ethanol and bio-diesel.

The WTO panel said the various measures offered by Washington State, California, Montana, Connecticut, Michigan, Delaware and Minnesota violated the WTO’s national treatment principle because they were contingent on meeting domestic requirements.

WTO rules prohibit countries from imposing regulations that provide less favorable treatment to imported products than are offered to domestic products.

Either the U.S. or India may appeal the case within 60 days.

Annual goods and services trade between the U.S. and India totaled $142 billion in 2018, according to data published by the office of the U.S. Trade Representative.

Untitled Document

Recent Articles

Largest Cherokee County wind farm now under construction

After a 23-year wind farm construction hiatus, work on a 2nd Cherokee County wind farm has begun. Developed...

Nine solar projects go live in Georgia

Duke Energy Renewables, a subsidiary of Duke Energy, announced that nine solar projects developed with SolA...

Can Italy strike twice?

Italy’s National Energy Strategy aims to increase wind and solar power’s share of gross final energy consum...

Lekela reaches financial close for its West Bakr Wind project

Lekela announced that it has reached financial close on its first wind project in Egypt, West Bakr Win...

Bernie Sanders’ ‘Green New Deal’ aims to have renewables power homes by 2030

Bernie Sanders wants renewable energy to power U.S. homes and vehicles by 2030 -- and he wants to do it by ...

EVENTS

There is no current content available.

Copyright 2018 Bloomberg

PAST MAGAZINE ISSUE

05/01/2016
Volume 19, Issue 6

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today: