US-India Solar Trade Dispute




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The case discusses about the solar dispute between the US and India. It was reported that in 2010 India had launched the Jawaharlal Nehru National Solar Mission (JNNSM) – the national solar power program in India under which the country aimed to produce 20,000 megawatts (MW) of solar power by 2022. Since India did not have the capacity to manufacture the required equipment, it had to source solar equipment from other countries. However, in February 2013, the US filed a complaint with the World Trade Organization (WTO) dispute panel stating that India’s domestic country requirements (DCR) accorded less favorable treatment to imported solar modules and cells. India’s DCR made it mandatory for domestic solar producers to use only solar modules and cells manufactured in India in their power plants. This meant that the US solar power companies were blocked from competing for an important share in India’s solar power equipment market...

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Issues

The case is structured to achieve the following teaching objectives:

  • Analyze whether the WTO’s ruling against India for violating global trade rules undermined the country’s efforts toward promoting the use of clean energy.
  • Evaluate how India could resist adopting protectionist measures such as DCR, which were inconsistent with international obligations since DCR skewed competition.
Contents
INTRODUCTION
ABOUT THE NATIONAL SOLAR MISSION
DID INDIA FLOUT THE NORMS?
INDIA DEFENDS ITS STANCE
THE WTO RULING
LOOKING AHEAD

Keywords

World Trade Organization (WTO), Jawaharlal Nehru National Solar Mission (JNNSM), Trade-Related Investment Measures, General Agreement on Tariffs and Trade, Domestic country requirements (DCR),Solar power program, Global trade,Renewable energy, International Trade,GATT, TRIMs,International Obligations, Protectionist Policies, Domestic Manufacturers, Imports, Discrimination in Trade, Apellate Body, Make in India

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