PV panel dumping finding to set off tariffs

The US International Trade Commission ruled on Wednesday that imports of solar panels from the Chinese mainland and Taiwan have hurt the US solar industry, a decision that will mean heavy import duties on the products.

The ITC panel, an independent agency that provides trade policy advice to Washington, voted 5-0 that the US industry was "materially injured" by imports from the mainland, and 4-1 by imports from Taiwan.

The ITC's move is the final decision on a trade dispute that began in December 2013 when the US-arm of German solar manufacturer SolarWorld accused Chinese PV panel makers of sidestepping import tariffs and dumping product on the US market.

The Department of Commerce will issue antidumping and countervailing orders on imports of solar products from mainland and Taiwan at rates determined in December 2014.

China's Ministry of Commerce has reiterated its calls for the US to objectively and fairly handle ongoing solar trade disputes, honor its commitment against protectionism and work with China to maintain a free, open and just trade environment.

Cash deposits for countervailing duties will be equal to the final subsidy rates, which range from 38.72 percent to 49.79 percent.

Commerce previously determined that products from China were dumped at a margin ranging from 26.71 percent to 165.04 percent, and those from Taiwan at rates from 11.45 percent to 27.55 percent.

Final orders will be announced by Commerce at the end of January or beginning of February.

"Today's votes will allow us to move forward with additional certainty and will likely mean additional investment and hiring in the future," said Mukesh Dulani, US president of SolarWorld, after the announcement.

The Coalition for Affordable Solar Energy (CASE), which has been against the tariffs and the Commerce department's decisions, called the vote "disappointing".

CASE president Jigar Shah said that while the results were expected, the ITC voting to uphold the tariffs on the products will raise the price of solar power for American consumers.

"It's particularly troubling that US trade policy is working to increase the cost of solar products through tariffs when we know that more affordable solar energy creates more American solar jobs," he said.

"As shown in the data from the recent National Solar Jobs Census, falling module prices contributed to a 21.8 percent growth of solar employment in 2014, including a doubling of the installation sector since 2010, which is the largest source of domestic employment growth," Shah said.

"We continue to urge the governments of the US, China and Taiwan to negotiate a solution to the tariffs rather than erecting self-defeating barriers to global trade," he added.

Philip Shen, senior research analyst at Roth Capital Partners, said in a client note after the decision that the ITC's decision was "just a matter of course".

amyhe@chinadailyusa.com