Lawmakers Say AD/CV Duties on China Solar Products Hurt Industry, Urge Compromise
The Commerce Department’s January decision to launch antidumping and countervailing duty investigations on crystalline silicon photovoltaic products from China and Taiwan would likely prolong the on-going solar trade dispute, said seven Senators in an April 9 letter (here) to Vice President Joe Biden. The dispute is limiting job growth in the U.S. solar industry, said the lawmakers. They urged the Obama administration to ramp up efforts to seal a long-term settlement of the solar trade dispute with China.
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Commerce imposed AD/CV duties on Chinese solar cells in 2012 (see 12110817). China retaliated with its own CV duties in September (see 13091918). Commerce recently began another investigation at the request of U.S. solar companies on "solar products" to close an alleged "loophole" (see 14010301). "Earlier this year, the Department of Commerce commenced another round of antidumping investigations into Chinese solar panels, which will likely lead to additional tariffs and further retaliations from the Chinese," said the senators in their letter. "Continuing to let this dispute play out one case at a time will limit job growth and it may even lead to job loss."
“The dispute with China over solar goods continues to escalate, and we believe your leadership is critical to resolving the current situation. China continues to demonstrate an unwillingness to settle the dispute until our domestic solar industry presents unified proposals that remove existing trade restrictions,” said the lawmakers. “In order to align the domestic solar industry, we ask you to bring folks together to develop a negotiated settlement that will lead to growth in all aspects of the solar industry."
The International Trade Commission in February determined U.S. industry may be injured by Chinese dumped and illegally subsidized solar products, following the Commerce decision to begin investigations (see 14021418). The duties would prevent U.S. consumers from accessing solar products at economical rates, said Rep. Scott Peters, D-Calif., in an April 9 op-ed in The Hill (here). “Trade petitions at the International Trade Commission and the Department of Commerce threaten to impose tariffs on solar products from abroad,” said Peters. “This tax would drive up the cost of solar products, and price hundreds of California companies out of the market by making solar uncompetitive against other cheap forms of electricity generation, like coal and natural gas.”