Taiwan takes India to WTO’s safeguard committee on solar duty
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Published: 1st Oct, 2018
Taiwan has sought consultations with India under the WTO’s safeguard agreement against New Delhi’s decision to impose import duty on solar cells
Context
Taiwan has sought consultations with India under the WTO’s safeguard agreement against New Delhi’s decision to impose import duty on solar cells
About
The objective of the consultation is to “exchange views on the proposed measures and reaching an understanding on ways to achieve the objectives” set by WTO Agreement on Safeguards.
Consultations of the above kind do not fall under WTO’s dispute settlement system.
Solar cells are electrical devices that convert sunlight directly into electricity and are imported primarily from China, Malaysia, Singapore and Taiwan.
Imports of solar cells from Malaysia and China account for more than 90% of the total inbound shipments in the country.
India had imposed safeguard duty of up to 25% on solar cells imports from China and Malaysia for two years to protect domestic players from steep rise in inbound shipments.
As an exporter of solar cells, Taiwan has a substantial interest in recent measure taken by India.
Significance
Seeking consultations under the safeguard agreement is a way to inform other countries that they are not fulfilling their commitments under the WTO rules.
Taiwanese decision of holding consultations as soon as possible would result into amicable and faster resolution of the issue.