India questions US green energy incentives at WTO

India hit back at US accusations of trade restrictions in its solar industry on Wednesday, suggesting Washington was guilty of the banned practices, in a move that may deepen divides between giants of the developing and developed world.

India asked Washington to justify incentives offered to US companies to use local labour and products in renewable energy and water projects, in filings to the World Trade Organization published on Wednesday.

It cited a list of projects in US states and regions. “As the US is aware, compliance with requirements of WTO agreements extends to all levels of government within a WTO member,” India said in one of the filings.

Its requests for information - sometimes used as a precursor to a formal trade dispute - came two months after the United States launched a trade dispute about incentives offered to local suppliers in India’s solar industry.

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