WTO - India's Dispute on Solar Cells
YESTERDAY, the Panel appointed by the Dispute Settlement Body (DSB) of the WTO circulated its report to the Members on the complaint filed by USA against India in the matter relating to domestic content requirements under the Jawaharlal Nehru National Solar Mission ("NSM") for solar cells and solar modules.
On 6 February 2013, the United States requested consultations with India concerning certain measures of India relating to domestic content requirements under the Jawaharlal Nehru National Solar Mission ("NSM") for solar cells and solar modules.
The United States claims that the measures appear to be inconsistent with:
Article III:4 of the GATT 1994;
Article 2.1 of the TRIMs Agreement; and
Articles 3.1(b), 3.2, 5(c), 6.3(a) and (c), and 25 of the SCM Agreement.
The United States also claims that the measures appear to nullify or impair the benefits accruing to the United States directly or indirectly under the cited agreements.
On 13 February 2013, Japan requested to join the consultations. On 21 February 2013, Australia requested to join the consultations.
On 10 February 2014, the United States requested supplementary consultations concerning certain measures of India relating to domestic content requirements under "Phase II" of the Jawaharlal Nehru National Solar Mission ("NSM") for solar cells and solar modules.
On 14 April 2014, the United States requested the establishment of a panel. At its meeting on 25 April 2014, the DSB deferred the establishment of a panel.
At its meeting on 23 May 2014, the DSB established a panel. Brazil, Canada, China, the European Union, Japan, Korea, Malaysia, Norway, the Russian Federation and Turkey reserved their third party rights. Subsequently, Ecuador, Saudi Arabia and Chinese Taipei reserved their third party rights. Following the agreement of the parties, the panel was composed on 24 September 2014.
On 24 March 2015, the Chair of the panel informed the DSB that the panel expects to issue its final report to the parties by late August 2015, in accordance with the timetable adopted after consultation with the parties.
On 24 February 2016, the panel report was circulated to Members.
The Panel found that India failed to demonstrate that the challenged measures are justified.