India blocks China's request for solar, IT dispute panel at WTO

New Delhi: India on Friday blocked China's first request to set up a dispute panel at the World Trade Organization (WTO) in a case that Beijing has filed alleging that New Delhi's tariffs and incentives discriminate against its imports of information technology and solar energy products.

At a meeting of the WTO's Dispute Settlement Body (DSB), India argued that the measures are consistent with multilateral rules. Earlier this month, China had requested a panel be set up after the failure of bilateral consultations on reaching a mutually agreed solution to the dispute.

"India said a country that is estimated to control more than 80% of the global value chain of solar module production feels it necessary to take actions to stymie the legitimate growth of this industry in other countries," said an official, who did not wish to be identified.


China had filed the case last year. It can renew its request at the next meeting of the DSB for the establishment of a dispute panel to determine whether the measures are consistent with India's WTO commitments.

"China claims that India is applying customs duties and other charges on a dozen imported IT goods that are in excess of the bound rates set out in India's WTO schedule of commitments," the official said.

Beijing also claimed that India's Solar Module Programme provides incentives in the form of cash grants to producers contingent on meeting minimum local value addition requirement which is inconsistent with WTO rules. This means less favourable treatment to imported goods than to like domestic goods and the provision of subsidies that are contingent on the use of domestic over imported goods.