WTO Solar Dispute

Why in News?

The World Trade Organisation’s Dispute Settlement Body (DSB) has agreed to India’s request for setting up a panel to determine whether the country complied with a previous ruling striking down its domestic content requirements for solar cells and modules.

 

FACTS FOR PRELIMS

Background

In 2013, the US filed a complaint before the WTO, arguing that the domestic content requirement imposed under India’s solar programme violates global trading rules by unfavourably discriminating against imported solar cells and modules. In February 2016, a WTO panel ruled that by imposing the domestic content requirement, India had violated its national treatment obligation.

The US  again approached the WTO, seeking action against India for non-compliance of the ruling.

India reiterated that it had brought about changes in rules and procedures under the Jawaharlal Nehru National Solar Mission, and power-purchase agreements no longer mandated domestic sourcing of cells and modules.

WTO

The Uruguay round of GATT (1986-93) resulted in the formation of World Trade Organisation. It is a permanent organisation which has been established on the basis of International Treaty. It is not an agency of the UNO.

STRUCTURE

i)It has a General Council for its administration, which includes one permanent representative of each member nation.

ii)The Highest authority for policy making is the Ministerial Conference, which is held every 2 yrs.

iii)The Dispute settlement body which considers the complaints of the member’s nations against violation of rules by other members.

iv)Trade Policy Review Body which reviews the trade policy of the member nation.

OBJECTIVES

i)To improve the standard of living of people in member countries.

ii)To ensure full employment and broad increase of effective demand

iii)To enlarge production and trade of services.

iv)To ensure optimum utilisation of World resources.

v)To accept the concept of sustainable development and to protect the environment.

 

Source-Indian Express.