The tension around the trade row between US and India over renewable energy subsidy schemes has reached new levels. India has reportedly filed its concerns over solar incentives in US with the World Trade Organisation (WTO). India questioned US about the incentives it has offered to US companies to use local labour and products in its renewable energy and water projects.
In the complaint to WTO, India said, “As the US is aware, compliance with requirements of WTO agreements extends to all levels of government within a WTO member.” The Indian government has filed a request for information with the WTO relating to several state-level renewable energy and water infrastructure schemes that comprise of “local content requirements”, according to a Businessgreen report. This request for information from India, asks for details on renewable energy schemes in Michigan, solar programs in California and Texas, and water infrastructure projects in a number of states, including South Carolina, Pennsylvania, West Virginia and Alabama, the report added.
Recently, US had also filed a complaint against India’s solar subsidy scheme that mandates functioning to comply with “local content requirements” that benefit domestic manufacturers. Both sets of allegations focus on the use of “local content requirements” that encourage companies to use local inputs in their projects, and have been regarded to be in breach of international trade rules.
