Green groups urge U.S. to drop solar trade case against India

WASHINGTON Thu Apr 24, 2014 3:48am IST

A man cleans panels installed at a solar plant at Meerwada village of Guna district in Madhya Pradesh June 18, 2012. REUTERS/Adnan Abidi/Files

A man cleans panels installed at a solar plant at Meerwada village of Guna district in Madhya Pradesh June 18, 2012.

Credit: Reuters/Adnan Abidi/Files

WASHINGTON (Reuters) - Environmental groups urged the United States on Wednesday to drop a challenge to India's massive solar program and said the World Trade Organization case would only hurt the growth of renewable energy resources.

The United States is taking action at the WTO over the domestic content requirements in India's program, which aims to ease chronic energy shortages in Asia's third-largest economy.

U.S. Trade Representative Michael Froman has said making Indian solar developers use locally made equipment discriminates against U.S. producers, in breach of WTO rules, and could hinder the spread of solar power globally by making equipment more expensive.

But green groups including the Sierra Club, Greenpeace USA and Friends of the Earth U.S. said supporting the U.S. industry should not come at the expense of India's push to cut fossil fuels and build a viable domestic renewables industry, which would in turn help global efforts to tackle climate change.

"The U.S. should not compromise the long-term growth of the solar market just so that it can achieve limited near-term gain," a coalition of 15 groups wrote in a letter to Froman.

The United States, which says that more competition in solar power will lead to higher quality products, plans to request a dispute settlement panel at the WTO on Friday, the next formal step in a dispute process which can lead to trade sanctions.

India, for its part, is investigating U.S. policies supporting solar panel makers, a signal of possible retaliation should the dispute escalate.

(Writing by Krista Hughes; Editing by Chris Reese)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

India-WTO Standoff

India-WTO Standoff

India threatens to derail WTO deal, prompts angry U.S. rebuke  Full Article 

Economic Pulse

Economic Pulse

New govt promises low and stable tax regime for economic revival.  Full Article 

IPO Probe Ends

IPO Probe Ends

Facebook says SEC's IPO probe ends, extending WhatsApp closing date  Full Article 

World Stocks

World Stocks

Goldman Sachs downgrades stocks to neutral for short term  Full Article 

Disappointing Results

Disappointing Results

Amazon's far-reaching ambitions, lack of profits, unnerve investors  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Market Eye

Market Eye

Nifty retreats from record highs on profit taking.  Full Article 

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage