According to the World Trade Organization’s filling dated 2 November, Trade delegations between India and Taiwan have failed without reaching an agreement. This dispute was caused due to Indian Safeguard duty imposed on solar cells and modules being imported from developed countries including China and Malaysia.
The filling also stated:”Nevertheless, India and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu have agreed to continue these discussions and that their reciprocal rights and obligations under the safeguards Agreement and the general Agreement on Tariffs and Trade 1994 will be maintained.”
Taiwan agreed to the safeguard duties of India at WTO by requesting further consultations in September, asserted having “a substantial interest” as an exporter of the affected solar panel. Malaysia also took up India at WTO on safeguard duty imposed in July.
The safeguard duty has made a major impact in India’s solar progress along with consultancy firm bridge to India’s latest release stating “long term outlook for the sector is looking decidedly downbeat” because of internal reasons. The Ministry of New and Renewable Energy’s (MNRE) failure to address qualms about the GST issues and the tender designs became the major drawback, hence many potential bidders stayed back from the process.