×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

GS-II :
  • 10 September, 2019

  • Min Read

A minor win for India at WTO.

GS-II: A minor win for India at WTO

News

A WTO panel in June accepted India’s claim in a dispute concerning U.S. regulations on the domestic content requirement in the production of renewable energy.

The dispute and the Verdict:

The dispute revolved around certain States in the U.S. that give incentives to local producers in the form of tax rebates, refunds, and credits when they produce renewable energy using locally manufactured products.

Article III of the WTO’s General Agreement on Tariffs and Trade (GATT) requires that countries do not provide less favourable treatment to ‘like products’ originating from other nations.

A solar PVC manufactured in the U.S. should be liable to the same amount of tax as one made anywhere else in the world.

WTO’s determine whether an item is a ‘like product’ based on a product’s end-use, composition, substitutability, consumer preferences, and tariff classifications.

In this case, the U.S. conceded that the import from India was a ‘like product’.

But the U.S. argued that the figures quoted by India showing growth in the number of solar photovoltaic (PV) systems installed in Washington State between 2005 and 2015 do not support the argument that additional incentives have induced wide-scale adoption of locally made renewable energy products.

WTO panel rejected this argument, stating that Washington State’s additional incentive accords an advantage on the use of local products not available for ‘like imported products.

Significance:

  • India had earlier lost a similar dispute over its own domestic content requirements.
  • The U.S. imported 44% of the Indian solar module exports in the 2018-2019 period.
  • This dispute could have been easily avoided had the two countries settled their differences beforehand.

Conclusion:

There are various other disputes pending between the countries at the WTO involving the export promotion scheme brought in by India and the imposition of excess customs duty on steel and aluminium by the U.S.

Source: The Hindu


Pradhan Mantri Suryodaya Yojana

Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an

Foreign Contribution Regulation Act (FCRA)- NGO 

The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description

Voice clone-AI

Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na

Science communication- how to promote

Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI

Universal Basic Income (UBI)- Analysis

Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co

Toppers

Search By Date

Newsletter Subscription
SMS Alerts

Important Links

UPSC GS Mains Crash Course - RAW Prelims Answer Key 2024