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Log inU.S. launches new trade action against India over solar program
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Rishi
Kayalvizhi
truthbetold
smArtha
Hellsangel
nevada
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U.S. launches new trade action against India over solar program
by nevada Mon Feb 10, 2014 5:36 pm
http://news.yahoo.com/u-announce-trade-enforcement-action-linked-india-025201653--sector.html
WASHINGTON/NEW DELHI (Reuters) - The United States on Monday said it would take India to the World Trade Organization to gain a bigger foothold for U.S. manufacturers in its fast-growing solar products market, adding another irritant to an already strained relationship.
The Obama administration said it was filing its second case at the WTO over the domestic content requirements in India's massive solar program, which aims to ease chronic energy shortages in Asia's third-largest economy.
U.S. Trade Representative Michael Froman said making Indian solar developers use locally made equipment discriminated against U.S. producers and could hinder the spread of solar power.
"Domestic content requirements detract from successful cooperation on clean energy and actually impede India's deployment of solar energy by raising its cost," Froman said.
It is the second time in a year that Washington has sought a consultation at the WTO - the first stage in a dispute process that can lead to sanctions - over India's Jawaharlal Nehru National Solar Mission.
The ongoing trade spat between the two allies follows the recent arrest and strip search of a female Indian diplomat in New York in connection with visa fraud charges.
The arrest sparked fury in India, prompted retaliatory measures against U.S. diplomats there and plunged U.S.-India relations to their lowest point since India tested a nuclear device in 1998.
The USTR issued its first challenge to India's solar program last February when it formally requested consultations over its first stage. The program aims to double India's renewable energy capacity by 2017.
U.S. officials had hoped a second phase of the program would address Washington's concerns, but now fear the harm to American producers would likely be even greater because the rules were expanded in October to cover so-called thin film technology that comprises the majority of U.S. solar product exports to India.
India hit back at the initial U.S. accusations in April, asking Washington to justify its own incentives offered to U.S. companies that use local labor and products in renewable energy and water projects. The Indian embassy in Washington was not immediately available for comment on the latest trade action.
India has argued its solar policies are legal under WTO government procurement rules that permit countries to exempt projects from non-discrimination obligations.
YEARS IN THE MAKING
Froman said the action did not undermine the value that the United States placed on its relationship with India, saying: "Today's action addresses a specific issue of concern and in no way detracts from the importance we attach to this relationship." Attorneys for the USTR said later such cases took months to prepare.
U.S. solar trade groups cheered the move and said the United States had been patient in its discussions with India.
"The U.S. government spent two years talking with India trying to encourage them to move away from the local content requirement before initiating the first action roughly a year ago," said John Smirnow, vice president of trade and competitiveness for the Solar Energy Industries Association.
"We are almost three years in the making of the U.S. trying to get India to move back from this local content requirement."
U.S. environmental groups have urged the Obama administration to back off any WTO action, arguing that building up India's solar power industry will help it cut high greenhouse gas emissions.
But the administration has come under growing pressure from lawmakers and business groups to take a tougher stance on perceived Indian protectionist measures and intellectual property rights abuses by Indian drug companies.
India is widely perceived in Washington as a serial trade offender, with U.S. companies unhappy about imports of everything from shrimp to steel pipes they say threaten jobs.
The U.S. International Trade Commission is scheduled to hold a hearing into complaints of trade barriers erected by India on Wednesday and Thursday.
There are 14 past or current World Trade Organization cases between India and the United States, whose bilateral trade in goods measured $63.7 billion last year, not including the latest case.
WASHINGTON/NEW DELHI (Reuters) - The United States on Monday said it would take India to the World Trade Organization to gain a bigger foothold for U.S. manufacturers in its fast-growing solar products market, adding another irritant to an already strained relationship.
The Obama administration said it was filing its second case at the WTO over the domestic content requirements in India's massive solar program, which aims to ease chronic energy shortages in Asia's third-largest economy.
U.S. Trade Representative Michael Froman said making Indian solar developers use locally made equipment discriminated against U.S. producers and could hinder the spread of solar power.
"Domestic content requirements detract from successful cooperation on clean energy and actually impede India's deployment of solar energy by raising its cost," Froman said.
It is the second time in a year that Washington has sought a consultation at the WTO - the first stage in a dispute process that can lead to sanctions - over India's Jawaharlal Nehru National Solar Mission.
The ongoing trade spat between the two allies follows the recent arrest and strip search of a female Indian diplomat in New York in connection with visa fraud charges.
The arrest sparked fury in India, prompted retaliatory measures against U.S. diplomats there and plunged U.S.-India relations to their lowest point since India tested a nuclear device in 1998.
The USTR issued its first challenge to India's solar program last February when it formally requested consultations over its first stage. The program aims to double India's renewable energy capacity by 2017.
U.S. officials had hoped a second phase of the program would address Washington's concerns, but now fear the harm to American producers would likely be even greater because the rules were expanded in October to cover so-called thin film technology that comprises the majority of U.S. solar product exports to India.
India hit back at the initial U.S. accusations in April, asking Washington to justify its own incentives offered to U.S. companies that use local labor and products in renewable energy and water projects. The Indian embassy in Washington was not immediately available for comment on the latest trade action.
India has argued its solar policies are legal under WTO government procurement rules that permit countries to exempt projects from non-discrimination obligations.
YEARS IN THE MAKING
Froman said the action did not undermine the value that the United States placed on its relationship with India, saying: "Today's action addresses a specific issue of concern and in no way detracts from the importance we attach to this relationship." Attorneys for the USTR said later such cases took months to prepare.
U.S. solar trade groups cheered the move and said the United States had been patient in its discussions with India.
"The U.S. government spent two years talking with India trying to encourage them to move away from the local content requirement before initiating the first action roughly a year ago," said John Smirnow, vice president of trade and competitiveness for the Solar Energy Industries Association.
"We are almost three years in the making of the U.S. trying to get India to move back from this local content requirement."
U.S. environmental groups have urged the Obama administration to back off any WTO action, arguing that building up India's solar power industry will help it cut high greenhouse gas emissions.
But the administration has come under growing pressure from lawmakers and business groups to take a tougher stance on perceived Indian protectionist measures and intellectual property rights abuses by Indian drug companies.
India is widely perceived in Washington as a serial trade offender, with U.S. companies unhappy about imports of everything from shrimp to steel pipes they say threaten jobs.
The U.S. International Trade Commission is scheduled to hold a hearing into complaints of trade barriers erected by India on Wednesday and Thursday.
There are 14 past or current World Trade Organization cases between India and the United States, whose bilateral trade in goods measured $63.7 billion last year, not including the latest case.
nevada- Posts : 1831
Join date : 2011-04-29
Re: U.S. launches new trade action against India over solar program
by Hellsangel Mon Feb 10, 2014 5:48 pm
What percentage of energy in India is now generated from solar power?
PS: A whole lot of wiki articles on it:
http://en.wikipedia.org/wiki/Renewable_energy_in_India
http://en.wikipedia.org/wiki/Solar_power_in_India
PS: A whole lot of wiki articles on it:
http://en.wikipedia.org/wiki/Renewable_energy_in_India
http://en.wikipedia.org/wiki/Solar_power_in_India
Hellsangel- Posts : 14721
Join date : 2011-04-28
Re: U.S. launches new trade action against India over solar program
by smArtha Mon Feb 10, 2014 5:53 pm
nevada wrote:
U.S. Trade Representative Michael Froman said making Indian solar developers use locally made equipment discriminated against U.S. producers and could hinder the spread of solar power.
"Domestic content requirements detract from successful cooperation on clean energy and actually impede India's deployment of solar energy by raising its cost," Froman said.
Why cannot India have incentives and conditions towards 'self-reliance' in food, health, energy and defense needs. These are fundamental necessities for a nation to protect its sovereignty.
smArtha- Posts : 1229
Join date : 2013-07-29
Re: U.S. launches new trade action against India over solar program
by truthbetold Mon Feb 10, 2014 9:07 pm
Looks like India is making some impressive gains in renewable energy. May be wind/solar is to energy what wireless technology was to telephone industry. Coal fired thermal may not be primary source in future.
Gujarat (66%) and Rajasthan (20%). Third is AP with 2%. What a drop off? Is it because of real technical advantages or disadvantages? Or is there a Modi factor in this lopsided statistic?
Gujarat (66%) and Rajasthan (20%). Third is AP with 2%. What a drop off? Is it because of real technical advantages or disadvantages? Or is there a Modi factor in this lopsided statistic?
truthbetold- Posts : 6799
Join date : 2011-06-07
Re: U.S. launches new trade action against India over solar program
by Kayalvizhi Mon Feb 10, 2014 10:01 pm
It's time that we punish countries like India, China that do not follow international trade agreements. This is one way protect our economy and create jobs here.
Kayalvizhi- Posts : 3659
Join date : 2011-05-16
Re: U.S. launches new trade action against India over solar program
by Rishi Mon Feb 10, 2014 10:36 pm
Kayalvizhi wrote:It's time that we punish countries like India, China that do not follow international trade agreements. This is one way protect our economy and create jobs here.
KV,
When TN and Eelam become independent, which one will be "your" country?
USA?
TN?
Eelam?
Rishi- Posts : 5129
Join date : 2011-09-02
Re: U.S. launches new trade action against India over solar program
by Kayalvizhi Mon Feb 10, 2014 11:02 pm
usa
Kayalvizhi- Posts : 3659
Join date : 2011-05-16
Re: U.S. launches new trade action against India over solar program
by Marathadi-Saamiyaar Tue Feb 11, 2014 12:45 am
Kayalvizhi wrote:usa
Marathadi-Saamiyaar- Posts : 17675
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Age : 110
Re: U.S. launches new trade action against India over solar program
by bw Tue Feb 11, 2014 4:11 am
Kayalvizhi wrote:It's time that we punish countries like India, China that do not follow international trade agreements. This is one way protect our economy and create jobs here.
who is "we" now? all very interesting.
bw- Posts : 2922
Join date : 2012-11-15
Re: U.S. launches new trade action against India over solar program
by indophile Tue Feb 11, 2014 8:16 am
truthbetold wrote:Looks like India is making some impressive gains in renewable energy. May be wind/solar is to energy what wireless technology was to telephone industry. Coal fired thermal may not be primary source in future.
Gujarat (66%) and Rajasthan (20%). Third is AP with 2%. What a drop off? Is it because of real technical advantages or disadvantages? Or is there a Modi factor in this lopsided statistic?
It's corruption. For solar, the corruption may stretch all the way to Sun.
indophile- Posts : 4338
Join date : 2011-04-29
Location : Glenn Dale, MD
Re: U.S. launches new trade action against India over solar program
by truthbetold Tue Feb 11, 2014 10:09 am
Indo
i am assuming you are saying, states other than Gujarati and rajasthan are limiting solar growth due to corruption.
so are you not willing to give any credit to the political leadership of these performing states?
i am assuming you are saying, states other than Gujarati and rajasthan are limiting solar growth due to corruption.
so are you not willing to give any credit to the political leadership of these performing states?
truthbetold- Posts : 6799
Join date : 2011-06-07
Re: U.S. launches new trade action against India over solar program
by smArtha Tue Feb 11, 2014 1:20 pm
truthbetold wrote:Looks like India is making some impressive gains in renewable energy. May be wind/solar is to energy what wireless technology was to telephone industry. Coal fired thermal may not be primary source in future.
Gujarat (66%) and Rajasthan (20%). Third is AP with 2%. What a drop off? Is it because of real technical advantages or disadvantages? Or is there a Modi factor in this lopsided statistic?
"The production cost of solar power in India has fallen by more than half in recent years, from 17 rupees ($0.27) per kilowatt-hour (kWh) three years ago to 7.50 rupees per kWh currently and it could plummet further. But these costs are still high compared to coal (2.50 rupees per kWh), nuclear (3 rupees per kWh) or natural gas (5.5 rupees per kWh)."
Assuming the cost of Solar Power can reduce to 5Rs/kwh, isn't that a better investment towards energy self reliance and net reduction of current account deficit? Even if Solar Energy can address day time cooking, day time house hold electricity and day time transport/commute fuel needs then that is significant reduction of oil and natural gas reliance and dependency. It makes a lot of sense for India to move towards this goal over the next decade or two.
smArtha- Posts : 1229
Join date : 2013-07-29
Re: U.S. launches new trade action against India over solar program
by b_A Tue Feb 11, 2014 5:52 pm
truthbetold wrote:Looks like India is making some impressive gains in renewable energy. May be wind/solar is to energy what wireless technology was to telephone industry. Coal fired thermal may not be primary source in future.
Gujarat (66%) and Rajasthan (20%). Third is AP with 2%. What a drop off? Is it because of real technical advantages or disadvantages? Or is there a Modi factor in this lopsided statistic?
Rajastan has big desert and some areas of Gujarat also. Best places for installing the panels and the land is not wasted.
I read somewhere recently of Mod's plan to install solar panels on the Narmada canals.
b_A- Posts : 1642
Join date : 2011-05-08
Re: U.S. launches new trade action against India over solar program
by truthbetold Tue Feb 11, 2014 9:17 pm
B_A / Smartha,
What I am trying to understand is what are the success factors in Gujarat's success and if some or all of those success factors can be replicated in other states ?
Since solar and wind energy provide multitude of benefits including reduction of import costs of energy, reduction of current account deficit and improvement of local economies. Traditional accounting may not capture these benefits.
May be a new method of solar/wind energy project justification should be developed.
What I am trying to understand is what are the success factors in Gujarat's success and if some or all of those success factors can be replicated in other states ?
Since solar and wind energy provide multitude of benefits including reduction of import costs of energy, reduction of current account deficit and improvement of local economies. Traditional accounting may not capture these benefits.
May be a new method of solar/wind energy project justification should be developed.
truthbetold- Posts : 6799
Join date : 2011-06-07
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