Short Note – Indian Victory over US at WTO

A World Trade Organization (WTO) dispute resolution panel has granted India a victory in a 3-year-old case against the United States over restrictive trade practices. India has approached the WTO in September 2016 as it found that the American Domestic Content Requirements (DCRs) and the state-sponsored subsidies provided by 8 American states constituted unfair trade practices.

Want is the issue?

  • America had domestic content requirements in equipment used for generating renewable energy. This reduced competitiveness of Indian firms in American market.
  • State subsidies provided by eight states in the renewable energy sector violated certain provisions of the General Agreement on Tariffs and Trade (GATT).

Want is the verdict?

  • The WTO dispute resolution panel has concluded its ruling that US has nullified or denied benefits which were rightfully India s as per the GATT.
  • The steps taken by the US are inconsistent with the established norms of the GATT.
  • This verdict will allow Indian companies to enter American Markets more aggressively while US will be forced to remove unfair advantages which are accrued to its domestic companies.

What is the WTO?

The World Trade Organization (WTO) is an international organization which regulates trade between nations. The WTO agreements are negotiated and signed by the most of the participating nations and ratified in their parliaments. It aims to allow for concluding trade smoothly and fairly between nations.



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