China seeks dispute consultations against India's solar tariffs, PLI at WTO

New Delhi: China on Monday requested dispute consultations with India at the World Trade Organization (WTO) regarding certain Indian measures on solar cells, solar modules, and information technology goods, including the conditions and disbursement of incentives under the Production Linked Incentive scheme. In October, China had filed a complaint against India's subsidies for electric vehicles and batteries, alleging they violate global trade norms including the principle of national treatment and constitute import substitution subsidies, which are explicitly prohibited under the multilateral trade rules.

On Monday, Beijing alleged that India’s tariffs on the products are higher than the bound rate set and the Agriculture Infrastructure and Development Cess are inconsistent with its obligations under the General Agreement on Trade and Tariff (GATT) 1994. It said that these measures “discriminate against goods of Chinese origin” and “appear to contravene” the GATT.

“Through those measures, India accords to certain technology products originating in China treatment less favourable…and does not exempt those goods from ordinary customs duties and/or other duties or charges in excess of those set forth and provided in its Schedule,” China said.