U.S. Solar Industry Responds to U.S.-China Trade Ruling

The Department of Commerce announced its affirmative final determinations in the anti-dumping (AD) investigations of imports of certain crystalline silicon photovoltaic products (including cells, modules, laminates and/or panels) from China and Taiwan, and its affirmative final determination in the countervailing duty (CVD) investigation of imports of certain crystalline silicon photovoltaic products from China.

The Department of Commerce currently has existing AD and CVD orders on crystalline silicon photovoltaic cells, whether or not assembled into modules, from China.  The scope of these investigations specifically excludes those products covered by the existing AD and CVD orders.

Commerce determined that imports of certain crystalline silicon photovoltaic products from China and Taiwan have been sold in the United States at dumping margins ranging from 26.71 percent to 165.04 percent and 11.45 percent to 27.55 percent, respectively.  Commerce also determined that imports of certain crystalline silicon photovoltaic products from China have received countervailable subsidies ranging from 27.64 percent to 49.79 percent.

Commerce has elected to impost unilateral tariffs on all solar panels assembled in China, including those with solar cells produced in Taiwan, the United States or any third country. The specifics behind the decision:

• anti-dumping duty rates of 52.13 percent
• anti-subsidy rates of 38.72 percent on most imports of solar panels made in China
• anti-dumping rates of 19.50 percent on most imports of solar cells made in Taiwan, regardless of where they are assembled into panels

The new tariffs now await confirmation from the U.S. International Trade Commission.

In response to the decision, Jigar Shah, President of the Coalition for Affordable Solar Energy, released the following statement:

“Today’s decision by the U.S. Department of Commerce to further tax solar panels from China, even those with key components made in the U.S., will undercut the growth of American solar jobs, hurt the American solar industry and make it more difficult for solar technology to compete against fossil fuels. These unnecessary taxes inhibit competition and put upward pressure on solar panel prices needed by U.S. homeowners, installers and utilities.

“After three years of unproductive trade wars, which have proliferated around the world, we urge the U.S. and China to accelerate negotiations to preserve competition in the global solar industry. Affordable solar panels are a good thing for the U.S., China, and the world. As the world’s largest producers and consumers of energy, the U.S. and China share a unique responsibility to lead constructive and productive trade relations in the global solar industry. We look forward to continued progress in the weeks ahead.”

Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA), echoed the same sentiment as CASE.

“Unfortunately, today’s ill-advised and unprecedented decision will harm many and benefit few,” he said. “We remain steadfast in our opposition because of the adverse impact punitive tariffs will have on the future progress of America’s solar energy industry. It’s time to end this costly dispute, and we’ll continue to do our part to help find a win-win solution.”

On the other side, SolarWorld praised the ruling, saying that the U.S. Department of Commerce has paved the way for expansion of solar manufacturing in a strong and growing U.S. market. SolarWorld is optimistic that the new duties, along with the scope of imports that they cover, can curb or offset the Chinese industry’s circumvention of duties to address improper trade practices in the SolarWorld’s first cases. SolarWorld said the success of the new trade remedies will depend on steadfast enforcement.

“These remedies come just in time to enable the domestic industry to return to conditions of fair trade,” said Mukesh Dulani, U.S. president of SolarWorld. “The tariffs and scope set the stage for companies to create new jobs and build or expand factories on U.S. soil.”

The duties will go into effect around Feb. 1, 2015, if the U.S. International Trade Commission (ITC) affirms that the Chinese and Taiwanese trade practices injured domestic manufacturers. The ITC, which has made three previous affirmative votes in the solar cases, is expected to take its fourth vote on Jan. 20.