China Challenges US Safeguard Duty on Solar Imports before WTO

China Government has requested WTO dispute consultations with the U.S. to take appropriate measures at the state and municipal level that provide incentives for the use of domestically sourced renewable energy products and technologies for dispute settlement.

Adding to its wide range of conflicts with U.S., China has questioned the U.S. imposed safeguard duties on imports of crystalline silicon photovoltaic products before the World Trade Organization (WTO).

China filed a formal complaint with the WTO regarding the 30 percent hike in the solar tariffs which is said to have favored the U.S. domestic solar producers in a very inappropriate way.

Commerce ministry of China further mentions in the complaint filed at Geneva that the favor is in violation of the WTO Rules.

Additionally, China Government has requested World Trade Organization dispute consultations with the U.S. to take appropriate measures at the state and municipal level that provide incentives for the use of domestically sourced renewable energy products and technologies.

Further, China claims that the safeguard measures on solar cells and incentive measures for renewable energy are inconsistent with a number of provisions of the WTO’s Agreement on Safeguards and the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Trade-Related Investment Measures (TRIMs) and the GATT 1994 respectively.

Request for consultations filed by any entity/country is a formal initiation of dispute in World Trade Organization. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.