India has requested consultations with the U.S. under the dispute settlement system regarding alleged domestic content requirements and subsidies provided by eight U.S. states in the renewable energy sector.
The complaint, filed with the World Trade Organization (WTO), specifically alleges that Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware and Minnesota padded their renewables sectors with illegal subsidies.
India has alleged that the measures of the states are “inconsistent with WTO’s Agreement on Trade-Related Investment Measures and the Agreement on Subsidies and Countervailing Measures,” seeing as they provide less favorable treatment to imported products than to similar domestic products.
The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
The WTO statement says further details will be available within a few days.