Posts Tagged ‘World Trade Organization’

US uses WTO to block India’s solar power plan

March 2, 2016

CROP-solar-power-india-800x400India has been told that it cannot go ahead as planned with its ambitious plan for a huge expansion of its renewable energy sector, because it seeks to provide work for Indian people.  The case against India was brought by the US. 

The ruling, by the World Trade Organisation (WTO), says India’s National Solar Mission − which would create local jobs, while bringing electricity to millions of people − must be changed because it includes a domestic content clause requiring part of the solar cells to be produced nationally.

Source: Climate News Network (Hat tip to Bill Harvey)

The World Trade Organization rules that governments can’t subsidize infant industries because subsidies are trade barriers.   The theory is that they are equivalent to tariffs because they give the home team an advantage.

WTO rules have been used to penalize solar and renewable power industries in the United States, Canada, China and other countries.

The problem with this is that once a particular nation or business monopoly has established dominance, it is very difficult for a newcomer to break in.  That is why almost all industrial nations that came after Britain developed behind tariff walls, and why leaders of Britain, the first industrial nation, advocated free trade.

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WTO overrules U.S. country of origin law

May 20, 2015

The World Trade Organization has overruled a U.S. law requiring that imported meat be labeled as to its country of origin.

The law gives an unfair advantage to domestic livestock breeders and meat processors, the WTO said.

Now the WTO is in the process of deciding what retaliatory tariffs can be imposed by Canada and Mexico if the United States does not repeal the law.

This is a sample of what can be expected if Congress approves the Trans Pacific Partnership or Transatlantic Trade and Investment Partnership agreements.

The mechanism is different in the TPP and TTIP, but the purpose is the same.  Under the investor-state dispute settlement processes in these agreements, a panel of arbitrators could fine a government whose laws supposedly treated a foreign investor unfairly.  The government would have the choice of paying the fine or repealing the law.

It might be good to have a trade agreement that set minimum standards for inspection of imported meat.  But the existing and proposed trade agreements go the other way.  They restrict the power of democratically-elected governments to protect their citizens.

LINKS

WTO Rejects U.S. Appeal of COOL Ruling by Lydia Zuraw of Food Safety News.

If Fast Track Passes, Anything Attached to a “Trade” Treaty Will Pass by Gaius Publius for Down With Tyranny!  [Hat tip to naked capitalism]