A strained relationship had existed between the third largest Asian economy India and the United States since an Indian diplomat in the United States got stripped in the airport due to fake Visa claims. The two countries have had a rough time in the past couple of years, and the war of words and trade disagreements continues with the launch of a new trade action the United States has sanctioned against India over its recently launched solar program . Trade disagreements in the two countries have seen both countries lagging in the world trade due to the many cases pending in the World Trade Organization.
On February 11 the year 2014, the United States said that it is planning to pursue a case against India in the World Trade Organization to add to the already existing cases. The U.S officials claim that the proposed case will act as a foothold to the United States Industrialists in the solar market. The case is anticipated to be an added irritant to the already messy relationship between the two countries . The case filled by Obama administration is the second one in a row to the WTO in contrary to India over the local content necessities in the massive Indian solar program. The Indian Solar program aims at easing the chronic energy shortages within the entire nation. Asia's third-largest economy has had energy constraints over the past years, and the nation was at the eve of getting a solution with the solar program. The US challenged the solar program for the first time in February when it entreated for discussions over the same at its early stage. The Indian, however, believes the program will be a breakthrough in their pursuit of high capacity renewable energy in 2017 as anticipated.
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According to the United States representative Mr. Michael Froman, making the Indians use the locally made equipment is in the development of the solar program will act as discrimination to the U.S manufacturers, and such can barricade the binge of the program to other parts of the world. In his words, Froman stated; "Domestic content requirements detract from successful cooperation on clean energy and impede India's deployment of solar energy by raising its cost."
The US hoped for the betterment of the program following their claims at the beginning, but it has become even worse as the rules got expanded to cover for the thin film technology making the US producers at more risk since most of their solar products were exported to India. India has also hit back to the claims in several ways, but the nation concluded in an argument that its solar policies are formal and legal according to the rules of WTO permitting countries to exclude projects from non-discrimination obligations .
In summary, the fight between India has had old wounds dating back to 1998 getting hurt again and concerns from different groups in the US view the issue as a contemporary problem. The environmentalist groups in the US thinks the US should back off from the issue as Indians will cut the greenhouse gas emissions through the project. Probably the Indians should go ahead with their project and the US government must stop working under pressure from the businesspersons and profit-making bodies but instead focus on the importance of the solar project will bring to the environment as stated by environmentalist groups.
References
Fact Sheet, October 21, 2015: U.S India Relations: Retrieved from https://www.state.gov/r/pa/ei/bgn/3454.htm
Krista Hughes; Editing by Tim Ahmann and Paul Simao, (2014); U.S. launches new trade action against India over solar program Retrieved from: https://www.yahoo.com/news/u-launches-trade-action-against-India-over-solar-195608197--finance.html
Press Trust of India | Updated: June 13, 2018, 12:07 IST, India, Us Agree To Hold Comprehensive Talks To Address Trade Issues. Retrieved from: https://www.ndtv.com/india-news/india-us-agree-to-hold-comprehensive-talks-to-address-trade-issues-1866717
Press Trust of India Jun 14, 2018, 07:23:46 IST, India, US Agree To Discuss Trade Issues As Donald Trump Accuses India Of Charging 100% Tariff On American Goods . Retrieved from: https://www.firstpost.com/world/donald-trump-accuses-new-delhi-of-charging-100-percent-tariff-on-us-goods-india-us-agrees-to-discuss-trade-issues-4508387.html
Krista Hughes and Ross Colvin; Additional reporting by Nichola Groom in Los Angeles and Manoj Kumar in New Delhi; Editing by Meredith Mazzilli: https://www.reuters.com/article/us-usa-trade-india/u-s-launches-new-trade-action-against-india-over-solar-program-idUSBREA161W220140210
