India has launched a complaint before the World Trade Organization against the United States over alleged subsidies provided to renewable energy projects, a source close to the WTO said on Monday.
The request for consultations is the first step in the WTO’s dispute resolution process, and concerns practices in eight US states.
India believes the states of California, Connecticut, Delaware, Massachusetts, Michigan, Minnesota, Montana and Washington have made subsidies for renewable energy projects contingent on the use of domestic products, thus discriminating against foreign manufacturers in a breach of WTO agreements.
India and the United States now have 60 days to try to reach an agreement, after which New Delhi may request a WTO panel consider the dispute.
India’s complaint follows a US victory at the WTO over India’s requirement that only Indian-made products be used in large parts of its rapidly expanding solar power industry.
India appealed that February ruling by a WTO dispute settlement panel, with a ruling expected in the coming days.