WASHINGTON/LOS ANGELES: The United States took a step on Friday towards potentially extending import duties on Chinese solar energy products to also cover panels made with parts from Taiwan in a case that could have a major impact on the fast-growing US solar market.
The US International Trade Commission found there was reason to think the imports could harm the local solar industry, putting Washington on a path toward widening the reach of the steep duties it slapped on products from China in 2012 and potentially escalating a tit-for-tat trade spat.
The US arm of German solar manufacturer SolarWorld AG had complained that Chinese manufacturers are sidestepping the duties by shifting production of the cells used to make their panels to Taiwan and continuing to flood the US market with cheap products.
“Step by step, US solar producers are returning to a day when they no longer are forced to compete with the government of China,” said Mukesh Dulani, president of SolarWorld Industries America, which makes crystalline silicon solar panels at a factory in Hillsboro, Oregon.
SolarWorld said it had the support of other solar manufacturers operating in the United States in pushing for a broadening of the duties. But the Coalition for Affordable Solar Energy, which represents about 50 US solar companies that mainly focus on installation, said installers would suffer if there was another jump in the cost of modules. CASE said those prices had already gone up 10 percent since the complaint was filed on December 31.
“By raising the cost of solar for American homeowners, SolarWorld is poised to inflict critical damage on an industry which last year added more than 20,000 solar installation, sales, and distribution jobs to the US economy,” CASE President Jigar Shah said in a statement.
Lawyer Richard Weiner, a partner at Sidley Austin who is representing the Chinese solar industry, said SolarWorld was trying to shut competition out of the US market but did not have the capacity itself to supply all the goods needed.
“We remain convinced that fairly traded imported solar products from China and Taiwan are vital for America to continue its shift away from fossil fuels,” he said.
Taiwanese solar manufacturers have never engaged in dumping practices in the United States, the Taipei Economic and Cultural Representative Office in the US said in a statement, adding that prices on Taiwan-made solar cells are eight percent above the global average due to their “excellent quality.”
The ITC’s preliminary decision means the Commerce Department will continue with its investigation into whether the products are being sold in the United States below their fair value, or if their manufacturers receive inappropriate levels of subsidies. It could eventually suggest duties.
The department is due to make a preliminary decision on subsidies from China on March 28 and a preliminary decision on dumping on June 11. Reuters
