US to take India to WTO for imposing domestic content rules on solar developers

The United States said on Monday it would take India to the World Trade Organisation to gain a bigger foothold for US manufacturers in its fast-growing solar products market.

The US said it was filing its second case at the WTO over the domestic content requirements in India’s massive solar programme, which aims to ease chronic energy shortages in Asia’s third-largest economy.

US Trade Representative Michael Froman said making Indian solar developers use locally made equipment discriminated against US producers and could hinder the spread of solar power.

“Domestic content requirements detract from successful co-operation on clean energy and actually impede India’s deployment of solar energy by raising its cost,” Froman said.

It is the second time in a year that Washington has sought a consultation at the WTO – the first stage in a dispute process that can lead to sanctions – over India’s Jawaharlal Nehru National Solar Mission.

The US issued its first challenge to India’s solar programme in February last year when it formally requested consultations over its first stage.

The programme aims to double India’s renewable energy capacity by 2017.