Context:

• The World Trade Organisation’s Dispute Settlement Body (DSB) has agreed to India’s request for setting up a panel to determine whether the country complied with a previous ruling striking down its domestic content requirements for solar cells and modules.

Background

• In 2013, the US filed a complaint before the WTO, arguing that the domestic content requirement imposed under India’s solar programme violates global trading rules by unfavourably discriminating against imported solar cells and modules.
• In February 2016, a WTO panel ruled that by imposing the domestic content requirement, India had violated its national treatment obligation.
• The US  again approached the WTO, seeking action against India for non-compliance of the ruling.
• India reiterated that it had brought about changes in rules and procedures under the Jawaharlal Nehru National Solar Mission, and power-purchase agreements no longer mandated domestic sourcing of cells and modules.

About WTO:

• The Uruguay round of GATT (1986-93) resulted in the formation of World Trade Organisation.
• It is a permanent organisation which has been established on the basis of International Treaty. It is not an agency of the UNO.

Source: Indian Express & Wiki