The safeguard on imported solar cells drew criticism from EU and Japan. The reason for the criticism being the conduct of the investigation and the initial findings. The issue was raised at the meeting of safeguard committee of World Trade Organisation in Geneva. India has told WTO Committee that global trade rules were followed while imposing the safeguard measures on the solar cells.
According to the WTO norms, Safeguard duties can be imposed to restrict the import of a product. The restriction is imposed to by the member country to protect the domestic industry. It limits the presence of any product threatening to cause injury to the industry.
The EU raised an argument that such safeguard measures should only be imposed under exceptional circumstances and if the imports that are causing a problem are coming from only one source. Further, they added that this action can lead to serious domestic shortages. This step can also risk the sustainability of the environment.
On this India replied by telling that
It informed members in January that a preliminary safeguard of 70 per cent was notified to WTO members in January and that this was followed by a challenge to the measure in the domestic courts, so the matter is sub-judice. The investigations will be carried out in line with WTO rules.
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