The United States government has decided to take India back to the World Trade Organization for allegedly not complying with the global trade body’s policies on solar power, Reuters reported on Wednesday.
The WTO’s Dispute Settlement Body will hold a meeting on January 12, 2018. During the meeting, the United States will bring up how it believes India failed to adhere to a 2016 WTO ruling. The order said New Delhi had broken trade rules by making it mandatory for solar power developers to use Indian-made cells and modules.
In 2013, Washington had complained to the WTO, claiming that US exports of solar items to India had declined by 90% since 2011 because of India’s “discriminatory practices”. The world trade body ruled in favour of the US in 2016 and gave India till December 14 this year to comply with the verdict.
“Indian authorities have held extensive consultations since the adoption of the rulings and recommendations of the Dispute Settlement Body to fully comply with them,” India said in its response. “Accordingly, in compliance with the findings and recommendations of the body, India has ceased to impose any measures [on imports] as found inconsistent in the body’s findings and recommendations.”
However, the appeal by the US is still listed on the Dispute Settlement Body’s agenda for the January 12 meeting. If the authority rules that India has failed to adhere to its 2016 verdict, Washington could ask the WTO to impose trade sanctions on New Delhi, according to Reuters.