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India–Solar Cells: Trade Rules, Climate Policy, and Sustainable Development Goals

Published online by Cambridge University Press:  23 April 2018

MARIANNA KARTTUNEN  and
MICHAEL O. MOORE
MARIANNA KARTTUNEN*
Affiliation:
Regulatory Policy Division, OECD
MICHAEL O. MOORE*
Affiliation:
Department of Economics and Institute for International Economic Policy, George Washington University
*
*Email: [email protected].
**Email [email protected].
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Abstract

India–Solar Cells is one of a growing number of WTO disputes that highlight the continuing tensions between climate change polices (and renewable energy manufacturing initiatives in particular) and established multilateral trading rules. The United States alleged that Indian policies discriminated against foreign solar cell suppliers operating in the Indian market. The Appellate Body broadly rejected India's arguments to justify the measure either under Article III.8 public procurement derogations or as a general exception under ‘short supply’ and ‘compliance with laws and regulations’ provision of Article XX of the GATT. We argue that the Appellate Body was correct both on legal and economic grounds. The case does highlight the continuing need for clarity about the allowed parameters for climate change policies within the multilateral trade system.

Type
Review Article
Information
World Trade Review , Volume 17 , Issue 2 , April 2018 , pp. 215 - 237
Copyright
Copyright © Marianna Karttunen and Michael O. Moore 2018 

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Footnotes

The views expressed in this article are strictly personal and do not reflect the position of the OECD. The authors wish to thank participants at the 2017 WTO Case Law Workshop and in particular Chad Bown, Panos Delimatsis, Aksel Erbahar, Ilaria Espa, William Kovacic, Andrea Mastromatteo, Petros Mavroidis, Chloé Papazian, and Edwin Velmust for very helfpul comments. We also thank Yasmina Abdelilah and Yasuhiro Sakuma from the International Energy Agency for sharing useful data.

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