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Taiwan takes India to WTO’s safeguard committee on solar duty

  • Category
    Economy
  • Published
    29th Sep, 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.
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