INDIA REJECTS US SOLAR CLAIM AT WTO, EYES NEW DEFENCE

India hit back on Monday at Washington’s latest legal assault on its solar power policies at the World Trade Organisation, rejecting a US legal claim and exploring possible new protection of India’s own solar industry.

Last month the United States triggered a new round of litigation at the WTO, arguing that India had failed to abide by a ruling that it had illegally discriminated against foreign suppliers of solar cells and modules.

In a statement published by the WTO on Monday, India said it had changed its rules to conform with the ruling and that a US claim for punitive trade sanctions was groundless. “India underscores that the United States’ request is not a valid request.”

It said Washington had skipped legal steps, failed to follow the correct WTO procedure, and omitted to mention any specific level of trade sanctions that it proposed to level on India, leaving India “severely prejudiced”.

India would be vindicated if the proper process was followed, it said. “In view of the above, India strongly objects to the U.S. request of December 19, 2017.”

Renewable energy has become an area of severe trade friction as major economies compete to dominate a sector that is expected to thrive as reliance on coal and oil dwindles.

India unveiled its national solar programme in 2011, seeking to ease chronic energy shortages in Asia’s third-largest economy.

But the US complained to the WTO in 2013, saying US solar exports to India had fallen by 90%. The WTO judges agreed that India had broken the trade rules by requiring solar power developers to use Indian-made cells and modules.

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