US trade officials file case over India's solar program

U.S. trade officials filed a case against India arguing that their government's solar program favors their own products and discriminates against imports from the United States.

U.S. Trade Representative Ron Kirk announced Wednesday that the United States is asking the World Trade Organization (WTO) to begin to dispute settlement consultations over India's three-year-old national solar program, which they contend is requiring solar companies to buy only Indian-made solar products while offering subsidies to companies that make those purchases.

"Let me be clear, the United States strongly supports the rapid deployment of solar energy around the world, including with India," Kirk said.

"Unfortunately, India’s discriminatory policies in its national solar program detract from that successful cooperation, raise the cost of clean energy and undermine progress toward our shared objective.”   

On top of requirements to purchase solar cells and modules made in India, the government has said it is considering expanding the scope of the domestic content requirements further to include solar thin film technologies, which make up the majority of U.S. solar exports to India.  

"India isn’t playing by the rules, and USTR is right to go to the WTO to hold it accountable for its local content requirements," said House Ways and Means Chairman Dave Camp (R-Mich.).  

"Unfortunately, India’s policies are part of a broader trend that is putting U.S. jobs at risk, inhibiting investment and undermining our ability to sell American goods in other countries."

Camp said he also plans to work closely with USTR to address required localization barriers in India, China, Argentina and elsewhere around the world.

Consultations are the first step in the WTO dispute settlement process, and parties are encouraged to agree to a solution at this stage.

Under WTO rules, if the matter is not resolved through consultations within 60 days, the United States may request the establishment of a WTO dispute settlement panel.