India rejects China’s move for WTO dispute panel on solar sector support measures

India has blocked China’s first request at the World Trade Organization (WTO) to establish a dispute panel over India’s support measures for solar cells, solar modules and information technology sectors.

China had requested the formation of a dispute settlement panel earlier this month after bilateral consultations between the two countries failed to resolve the matter.

The request was discussed during a meeting of the WTO’s Dispute Settlement Body in Geneva on May 22.

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China’s complaint, filed in December last year, challenges India’s tariff measures on certain technology imports and incentive schemes that encourage the use of domestically manufactured products in sectors such as solar energy and information technology.

Beijing has argued that these measures discriminate against Chinese exports and violate provisions under the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures.

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India rejected the allegations and stated that its measures are fully consistent with WTO rules.

India also argued that it was notable for a country controlling more than 80 per cent of the global solar module value chain to oppose the development of manufacturing capacity in other countries.

Under WTO dispute settlement procedures, a member country can block the first request for a panel. However, if China renews its request at the next Dispute Settlement Body meeting, the panel will be established automatically.

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The dispute panel, once formed, will examine whether India’s import duties on certain technology products and its incentive schemes for solar manufacturing comply with its WTO commitments.

Both India and China are members of the 166-member WTO framework, which allows countries to challenge trade measures they believe negatively affect their exports.