USA against liberalizing their Green Sectors

The US government has been very vocal against developing countries trying to promote green industries, through preferential treatment given to domestic companies in subsidy schemes. In fact USA has filed a WTO complaint against India for the JNNSM central solar subsidy scheme, which mandates domestic content for solar panel installations being done using subsidies from the federal government. This has been done to help the cause of its companies First Solar and Sunpower which have benefited tremendously from the growth of Indian solar energy. However, the US government has not exactly been playing with the rules in its own backyard.

The US solar companies have been beaten black and blue by low cost Asian companies, which produce solar panels at a lower cost than the USA. Many US companies have closed shop unable to compete, while even the biggest ones are struggling. Sunpower was saved, thanks to the French oil giant taking a majority stake; while First Solar has also managed to survive, thanks to massive subsidies given by DOE for its massive solar farms. The US government imposed duties on imports of Chinese solar panels last year, due to complaints by some quasi bankrupt US companies. This has not helped US manufacturing which makes solar panels at much higher cost than the other countries.

Now the US military has joined the protectionist bandwagon by ruling that it will give preferential treatment to US and other friendly countries during procurement of solar modules. This policy has been done ostensibly under an antique law, dating back to 1933. This “Buy American” law will again target China and other countries. Note US has lost the right to preach to others about, when the country itself is using new and unique ways to protect its own. The spineless Indian government should fight back against the US and other countries who hypocritically attack protectionism using all weapons. However, the task seems too much for this corruption ridden government who does not care a hoot about the country.