India’s safeguard duty on imported solar cells draws criticism from EU and Japan

India’s decision to impose safeguard duty on imported solar cells drew criticism both from the European Union and Japan on Monday, April 23, 2018, at the World Trade Organisation. The European Union representative slammed India for its casual analysis. According to the former, the injury analysis of imported solar cells was inconclusive as injury to other domestic producers was not properly analysed. Japan suggested that there were flaws in the investigation process, which involved reasonable public notice.

At the WTO’s safeguards committee meeting, the EU even pointed out that safeguard measures were meant to be imposed under exceptional circumstances, especially if imports from any particular country cause problems.

Indian officials, however, have countered the criticisms by saying that they had notified the preliminary safeguard duty of 70 per cent to the WTO in January, followed by a challenge to the measure in the domestic courts, as reported by sources.

Chinese representatives at the WTO meeting said that the US imported aluminium and steel tariffs would severely damage the stability of the multilateral trading system and distort international supply chains, with considerable negative follow-up effects. China also claimed that the US has violated the WTO’s principle of non-discrimination between members by exempting certain exporters from the tariffs.

Following China, India said that such unilateral actions should not be indulged in the international trading system.