- Amidst India-US tariff war, India has won a trade dispute with US. A World Trade Organisation dispute resolution panel has ruled in favour of India in a case against the United States.
- The WTO panel stated that America’s domestic content requirements and subsidies provided by eight of its states (California, Connecticut, Delaware, Massachusetts, Michigan, Minnesota, Montana and Washington) in the renewable energy sector are violative of global trade norms.
- The panel concluded in its ruling that “the measures” of the US “are inconsistent” with certain provisions of the General Agreement on Tariffs and Trade,GATT.
- The panel also said that the US has “nullified or impaired benefits accruing to India under that agreement”. The GATT aims to promote trade by reducing or eliminating trade barriers like customs duties.
- As per the ruling, ten measures implemented by the US pertaining to renewable energy sector are inconsistent with its obligations under GATT 1994.
- In September 2016, India had dragged the US to WTO’s dispute settlement mechanism over America’s domestic content requirements and subsidies provided by eight states in the renewable energy sector.
