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US continues to have concern over local content requirements in India’s National Solar Mission

The US has been voicing its concern about the domestic content requirement and we have documented that in detail in our numerous essays including most recently last month when a  unnamed US trade official  told an Indian news paper that the United States Trade Representative’s office has recently submitted comments to the government of India expressing its concerns about the “trade-restrictive domestic content mandates”.

According to reports, the USTR’s office noted after the latest meeting between Sharma and US Trade Representative Ron Kirk that the value of trade in goods between the two countries had increased over threefold in the past decade.

However, several irritants remained, including the old complaint from the Obama administration about restrictions faced by American solar energy firms trying to do business in India.

On that issue, Kirk suggested India might be breaching World Trade Organisation (WTO) rules.

“We continue to have serious concerns about the local content requirements under India’s National Solar Mission, including with respect to their compatibility with WTO rules,” he said.

“We are particularly disappointed that India recently chose to expand the scope of those requirements for Phase-1, Batch-2.

We look forward to working constructively with India in its Phase-2 guidelines to ensure it can meet its clean energy objectives in a manner that does not discriminate against imports.”

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