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Question

Which of the following are the arguments of India in support of Domestic content requirement imposed under India’s national solar programme

Code


A

1 only

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B

2 and 3 only

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C

1 and 3 only

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D

All of these

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Solution

The correct option is D

All of these


WTO ruling on DCR

In a significant ruling, a World Trade Organisation (WTO) panel found that the domestic content requirement imposed under India’s national solar programme is inconsistent with its treaty obligations under the global trading regime.

However, India believes that its DCR is not in violation of any of the WTO obligations.

Under the World Trade Organization (WTO) Agreement, dumping is condemned (but is not prohibited) if it causes or threatens to cause material injury to a domestic industry in the importing country and thus countries are allowed to impose anti dumping duties on such imports.

India is not a member and only observer at GPA. The Agreement on Government Procurement (GPA) requires

that open, fair and transparent conditions of competition be ensured in government procurement.

India principally relies on the ‘government procurement’ justification, which permits countries to deviate from their national treatment obligation provided that the measure was related to “the procurement by governmental agencies of products purchased for governmental purposes and not with a view to commercial resale or use in production of goods for commercial sale”.


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