WTO agreed India’s request to form compliance panel

With the current World Trade Organizations (WTO’s) decision, it appears that the solar domestic content dispute between India and the U.S. has stepped forward. Last three-four hearing was just stuck in U.S. rejections of India’s compliance statement.

February 28, 2018 Sraisth

WTO's DSB accepted the India's request of the establishment of a compliance panel.

Image: Press Information Bureau, GoI

In the latest hearing of Dispute Settlement Body (DSB) today, February 28, 2018, the DSB has agreed to establish the compliance panel as requested by India.

It is significant progress in the solar dispute between India and the United States relating to measures affecting imported solar cells and modules.

Moreover, World Trade Organizations (WTO) has mentioned that the European Union, China, Chinese Taipei, Indonesia, Japan, Korea, Singapore, Canada, Norway, and Russia reserve their third-party rights to participate in the panel proceedings.

In the last hearing on February 9, DSB has deferred India’s request for establishing a compliance body on the U.S. disagreement to India’s DCR WTO ruling claims.

However, lately, India’s communication with WTO dated February 23, requesting for the constitution of a Panel under Article 21.5, it has again explained the action taken by India towards ensuring compliance with the recommendations and rulings of the DSB.

While upon asking, how the decision on panel formation turned in favor of India?, the Geneva trade official told pv magazine, “the establishment of the panel was not a surprise; under WTO rules, the first request for a panel can be blocked by any member (the U.S. in this case). However, a second request can only be blocked if all members agree to reject the request.

“So, the panel was established in this case on the second request even if the U.S. was not favorable,” said official.

The next hearing will be held on March 27.

The official continued, “in regards to the new compliance panel, India and the U.S. will sit down and determine who the panelists will be (probably the same three individuals who served on the original panel) and deal with other organizational matters before the panel starts its review.”

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