WTO

After years of debate, the Indian government made domestic manufacturing a central feature of renewables policy in 2021. The pivot came as the government sought economic growth and self-sufficiency following a border conflict with China. Vinay Rustagi, managing director of Bridge to India, says that trade barriers, subsidies, lower taxes, and demand growth have created the perfect recipe for expansion.

The European Union and the United States are seeking a solution for key aspects of “discriminatory” production requirements in the US Inflation Reduction Act (IRA). The EU said it might bring the case to the World Trade Organization if a compromise cannot be reached.

While Donald Trump grapples with the result of the election, Europe’s highest officials have moved on, and demonstrated new optimism for the four years ahead by setting a preliminary agenda for cooperation aimed at president-elect Joe Biden with key topics including work on renewables, battery storage and carbon pricing.

India imported $1.3 billion worth of solar cells and modules from China in fiscal 2019-20, but domestic manufacturers are now demanding a level playing field to compete against cheaper imports.

The move has been welcomed as a step in the right direction by lobby group SolarPower Europe nevertheless, particularly as it envisages bringing together EU low-carbon businesses. The outline ambition will now be considered by the European Parliament.

A World Trade Organization panel has found a U.S. move to incentivize the use of domestic solar products put imported goods from India and other countries at a disadvantage.

The contraction in Chinese trade flows to the U.S. is likely to result in the dumping in India of Far Eastern electronic and electrical components as well as steel, iron, chemicals and plastic products.

Taiwan has joined Malaysia in requesting consultations with India under the safeguard agreement of the World Trade Organization (WTO), following India’s decision to impose 25% safeguard duties on imports of solar cells, whether or not assembled in modules.

Through the consultation, the U.S. aims to settle the dispute over the 30% import tariffs, introduced under Section 201.