India wins renewable energy case at WTO

In a massive development, India defeated the US at WTO in a case concerning America’s domestic content requirements and subsidies provided by eight states in the renewable energy sector. The dispute goes back to 2016 when India dragged the U.S. to WTO’s dispute settlement mechanism. The 8 accused states include Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware and Minnesota. India had insisted that the measures are inconsistent with global trade norms since they provide less favourable treatment to imported products and because the subsidies are dependent on the use of domestic over imported goods.

The panel concluded that 10 measures implemented by the U.S. pertaining to renewable energy sector are incompatible with its obligations under GATT 1994. The ruling can be challenged in WTO’s appellate body.