At a meeting of the WTO’s Dispute Settlement Body (DSB), India argued that the measures in are consistent with multilateral rules. Earlier this month, China had requested a panel be setup after the failure of bilateral consultations on reaching a mutually-agreed solution on the dispute.
“India said that a country that is estimated to control more than 80% of the global value chain of solar module production feels it necessary to take actions to stymie the legitimate growth of this industry in other countries,” said an official. China had filed the case last year.
It can renew its request at the next meeting of the DSB for the establishment of a dispute panel to determine whether the measures are consistent with India’s WTO commitments.
“China claims that India is applying customs duties and other charges on a dozen imported IT goods that are in excess of the bound rates set out in India’s WTO schedule of commitments,” the official said.
Beijing also claimed that India’s Solar Module Programme provides incentives in the form of cash grants to producers contingent on meeting minimum local value addition requirement which is inconsistent with WTO rules. This means less favourable treatment to imported goods than to like domestic goods and the provision of subsidies that are contingent on the use of domestic over imported goods.
As per the official, China said that members’ industrial promotion shouldn’t be based on restrictive and discriminatory measures that disturb competitive opportunities, supply chains and increase uncertainties for businesses while India emphasised that the rule-based trading system should not support such mercantilism, which amounts to beggar-thy-neighbour.