TPP Preview: America Forces India to shut down Solar Production using WTO

Many opponents to the Trans-Pacific Partnership argue not only against the negative economic ramifications for the United States, but also contend that the trade treaty forces member nations to sacrifice their sovereignty in order to abide by the agreement.  India serves as a prime example of what happens when nations sign away their economic freedom to international treaties.

Solar power sees unprecedented boom in the United States – solar power grew by 6.2 gigawatts in 2014; and 1 million American homes have solar panels as of February 2016. However, the United States dragged India to the World Trade Organization claiming that India’s efforts to boost local production of solar cells and solar modules violated WTO rules.

Just recently, a WTO panel has ruled that the domestic content requirement (DCR) imposed under India’s National Solar Mission (NSM), is inconsistent with its archaic treaty obligations under the global trading regime. The requirement in question mandates a percentage of components to be sourced locally, to boost homegrown production of solar cells and solar modules.

Though India argued that NSM helps the country meet its climate commitments under the United Nations Framework Convention on Climate Change (UNFCCC), the WTO rejected the argument. They stated that domestic policies seen as violating WTO rules, cannot be justified on the basis that they fulfill UNFCCC or other international climate commitments. Like seriously?

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By putting pressure on India’s solar program, and by hiding behind the biased WTO agreements, the United States wants to boost its solar exports to India, which it argues have fallen by 90% from 2011, when India imposed the rules.

Considering that the Obama administration has already pressured companies into keeping quiet regarding the adverse effects of TPP, it would be no shock to see American companies — just like those in India — forced out of domestic commerce as TPP rolls out.

Source: Collectively Conscious