India has dragged the US to the WTO over America’s domestic content requirements and subsidies provided by eight states in the renewable energy sector. “India has requested consultations with the US under the dispute settlement system regarding alleged domestic content requirements and subsidies provided by eight US states in the renewable energy sector,” the WTO said in a statement.
The eight states are – Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware and Minnesota. When contacted, an Indian official said, “Yes we have sought consultations with the US on the matter.” India has stated that the measures are inconsistent with the global trade norms because they provide less favourable treatment to imported products than to like domestic products, and because the subsidies are contingent on the use of domestic over imported goods.
The request for consultations is the first step in a dispute at the WTO under its Dispute Settlement System. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations fail to resolve the dispute, the complainant may request adjudication by a panel.