The degree to which countries can help support their burgeoning renewable energy sectors was again the subject of debate at the WTO this week, with Canada defending itself at a second dispute settlement hearing. Japan and the EU have brought two separate cases - DS412 and DS426, which are being heard together - against Canada over local content requirements in the province of Ontario's feed-in tariff scheme.

The WTO's highest court ruled on Wednesday 16 May that the US "dolphin-safe" label violates WTO law, marking another step in a decade-old dispute between the US and Mexico (DS381). Notable is the landmark finding that a non-binding label can be a prohibited technical regulation - a point that could have ramifications for consumer labels addressing anything from organic food to fair trade.

German pharmaceutical company Bayer AG has formally lodged a challenge against a landmark Indian ruling that allowed a domestic generic drug-maker to produce a low-cost version of an anti-cancer drug for the Indian market. The appeal was filed on Friday 4 May with India's Intellectual Property Appellate Board.

The EU's controversial decision to include aviation under the bloc's emissions trading system (ETS) has been dubbed a "deal breaker" for global climate talks by India's environment minister, Jayanthi Natarajan. While the minister is India's lead negotiator at the UN Framework Convention on Climate Change (UNFCCC) talks, it is not clear if her comments reflect official government policy.

Tensions continue to run high over the inclusion of aviation in the EU's Emissions Trading System (ETS), after Indian government officials confirmed last Thursday that New Delhi would be asking its airlines not to participate in the scheme. Meanwhile, the trade group representing the largest US airlines is now calling upon the White House to pursue a case against the Brussels plan at the International Civil Aviation Organization.

The ongoing controversy over the EU's plan to include aviation in its Emissions Trading System (ETS) ramped up another notch this week, with India reportedly planning to urge its airlines to boycott the scheme. Brussels, meanwhile, continues to stand firm in support of the ETS in the absence of a global agreement on aviation emissions.

The US Commerce Department will begin imposing duties on solar panel imports from China, after finding that Chinese solar manufacturers receive unfair government support. Though the announced duties were far below the complainants' requests, the decision is still expected to increase trade tensions between Beijing and Washington, which have already been running high in recent weeks.

The Indian government announced its intention to partially repeal a recent ban on the export of cotton on Monday, just one week after originally enacting the measure.

In a landmark move, the Indian Patent Office announced on Monday that it has issued its first compulsory license to a domestic generic drug-maker. The decision effectively ends German pharmaceutical company Bayer AG's monopoly over an anti-cancer drug and authorises the production of a low-cost version for the Indian market.

A group of Europe's top aviation companies have jointly called upon the bloc's political leaders to stop an escalating conflict over the inclusion of aviation into its emissions trading scheme (ETS). Brussels insists, however, that the legislation requiring airlines to surrender carbon permits for the emissions they produce during all incoming and outgoing flights will stand until a global agreement regarding aviation emissions has been reached.

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