India Proposes 70% Duty on Solar Imports From China, Malaysia

Protective measures can cripple SEZ units and go against the theme and spirit of Make in India Policy the association said

Protective measures can cripple SEZ units and go against the theme and spirit of Make in India Policy the association said

On December 20, 2017, the U.S. government had chose to take India to the global trade body for allegedly not complying with the the WTO's policies on solar power.

India lost the solar dispute in September 2016, after the WTO's highest court-the Appellate Body-upheld a ruling that India violated several core provisions on national treatment and trade-related investment measures.

"In view of the above, India strongly objects to the United States request of 19 December 2017", India added.

A statement by the WTO read, " India said it had changed its rules to conform with the ruling that a U.S. claim for punitive trade sanctions were groundless".

The Indian government has rejected the Trump administration's bid to begin imposing retaliatory tariffs in a long-running World Trade Organization scrap over solar energy rules, saying that the United States has "no legal basis" to punish India, according to WTO documents published Monday. It contends that India failed to adhere to a 2016 WTO ruling, which said New Delhi had broken trade rules by making it mandatory for solar power developers to use Indian-made cells and modules.

The Directorate General of Safeguards Duty (DGS), in its preliminary report investigating the dumping of solar cells, (whether or not assembled in modules or panels), has suggested a 70 per cent safeguards duty on imports from China.

In its two-page rebuttal, India said the U.S. failed to follow the "critical" steps as prescribed in the dispute settlement understanding before initiating the request for authorization to suspend trade concessions. The rest has to be purchased on the global market, it said.

"China's export orientation in respect of the solar cell is unquestionable, but a material fact that emerges is that during the past two years, both its direction and volume of export trade changed in a significant manner towards India...." Solar power tariff bids in India have collapsed significantly over the last few months in conjugation with the fall in worldwide solar module prices.

Earlier, the USA sought authorization to impose trade retaliatory measures to the tune of around $450 million on India in the avian influenza trade dispute without establishing whether New Delhi has removed restrictions on American chicken and chicken products as per the dispute settlement body recommendations.

The United States lodged a complained with the WTO in 2013 that USA solar exports to the country fell by 90 per cent.

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