WTO: US Challenges Ruling Favouring India on Solar

According to the WTO communication “the US hereby notifies its decision to appeal to the appellate body certain issues of law covered in the report of the panel in the US – certain measures relating to the renewable energy sector and certain legal interpretations developed by the panel”.

Taking another step towards trade war brewing between the United States (US) and India, US now challenged the recent ruling of the World Trade Organization’s (WTO’s) dispute settlement panel which favoured India on the solar sector front.

As per the PTI report, US has appealed in the Appellate Body of WTO, which is above the dispute settlement panel, against the ruling given in June by the dispute settlement panel saying domestic content requirements and subsidies provided by eight US states in the solar or renewable sector are violative of global trade norms.

These states were Connecticut, California, Massachusetts, Montana, Delaware, Washington, Michigan, and Minnesota.

According to the WTO communication “the US hereby notifies its decision to appeal to the appellate body certain issues of law covered in the report of the panel in the US – certain measures relating to the renewable energy sector and certain legal interpretations developed by the panel”.

Earlier, the ruling of the dispute settlement panel stated that the measures of the US are inconsistent with certain provisions of the General Agreement on Tariffs and Trade (GATT), which aims to promote trade by reducing or removing trade barriers.

Meanwhile, both the parties can appeal against the panel’s ruling on the basis of points of law, such as legal interpretation – parties cannot re-open factual findings made by the panel.

The Geneva-based Appellate Body is comprised of three persons of recognised authority and unaffiliated with any government. They are appointed for a fixed-term period. Generally, the Appellate Body has a time period of up to 3 months to conclude its report.

Moreover, this WTO body can uphold, modify or reverse legal findings and conclusions of the dispute panel and its reports.

In case this ruling goes against India, the country will have to comply with the order in 6 to 7 months time frame.