Ruling against India, the WTO today said the government’s power purchase agreements with solar firms were “inconsistent” with international norms — a matter in which the US had filed a complaint before the global trade body alleging discrimination against American firms.
India is likely to appeal against the WTO’s panel ruling that has stated that the country’s power purchase agreements with solar firms were “inconsistent” with international norms. The rulings of the WTO’s dispute settlement panel can be challenged in the WTO’s Appellate body. The decision to move to the Appellate Body would be taken after consulting the Ministry of New and Renewable Energy, an official source said. India has about three months time to appeal in the Appellate Body. The Appellate Body is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members.
The Body can uphold, modify or reverse the legal findings and conclusions of a panel, and the Body’s reports, once adopted by the Dispute Settlement Body, must be accepted by the parties to the dispute. Ruling against India, the WTO today said the government’s power purchase agreements with solar firms were “inconsistent” with international norms — a matter in which the US had filed a complaint before the global trade body alleging discrimination against American firms. The US had dragged India to the World Trade Organisation (WTO) on this issue in 2014, alleging that the clause relating to domestic content requirement (DCR) in the country’s solar power mission were discriminatory in nature and “nullified” the benefits accruing to the American solar power developers.
This was the second case where India has lost against the US in WTO. In June 2015, India lost a case when the WTO ruled that the Indian ban on import of poultry meat, eggs and live pigs from the US was inconsistent with the global norms.
Source:Moneycontrol
