INDIA-SOLAR CELLS: THE STRANGE ABSENCE OF THE SCM IN THE US CLAIM
In India-Solar Cells, the United States' first request for consultations was also made (beyond TRIMS and Article III:4 of GATT 94) pursuant to Articles 4 of the SCM prohibiting subsidies contingent about the use of domestic products.
However, the United States' second request for consultations was not made pursuant to the SCM, nor did the United States' request for the establishment of a panel make reference to any provisions of the SCM Agreement.
I am wondering about the underlying causes behind this change of mind. My intuition is that this change of mind is far from being anecdotal. I see two potential causes behind this change of mind:
1) The Canada Feed-in jurisprudence about the difficulty to prove the existence of a benefit when governments “create a market”
2) Fear of counter-claims: Since 2001, California has given $2 billion in such subsidies, while states ranging from Minnesota to Kansas and Mississippi have doled out hundreds of millions of dollars each. Cities, such as Austin and Los Angeles, have also gotten into the act, contributing millions to renewable energy firms.
3) Any other unknown cause?