If U.S. companies prevail, the prices for Chinese solar panels could be between 20 and 300 percent more expensive say sources.
DALLAS – A coalition of seven U.S.-based solar panel manufacturers filed a petition Wednesday alleging unfair trade practices, setting off an investigation that could thrust the solar industry in the middle of a U.S.-China trade dispute.
By filing their petition, the companies are claiming that they are unable to compete in the lucrative and quickly expanding American solar market because, they say, they are being undercut by Chinese panelmakers and cell manufacturers that are dumping their product at artificially low prices. They also contend that panelmakers and cell manufacturers are receiving unfair subsidies from their government. A finding on behalf of the American companies would lead to tariffs being imposed on solar panels imported from China, possibly as soon as next spring.
SolarWorld, which employs more than 1,000 workers at its Oregon headquarters and manufacturing facility, is the only company named in the trade complaint. The other six remain anonymous, which is allowed by the Department of Commerce. The group on Wednesday launched the Coalition for American Solar Manufacturing.
Trade complaints are not uncommon. However, according to industry sources, the sheer level of inventory and dollars at stake, and the vast potential of a future market, could make this among the most divisive trade complaints filed in recent years.
In response to the news, Rhone Resch president and CEO of the Solar Energy Industries Association (SEIA) said that his organization "will continue to support open markets based on free and fair trade principles." SEIA believes that is is crucial for governments and private organizations, however, to "operate within the framework of internationally-negotiated trade rules.
“If it appears that trade obligations are not being met, solar companies – whether foreign or domestic — have the right to request an investigation into alleged unfair trade practices. These allegations must be thoroughly examined and, if unlawful trade practices are found, action to remedy those practices should be taken," he added.
Politically, some Republican presidential candidates and Congressional lawmakers on both sides of the aisle have indicated support for a more hardline stance against China over issues ranging from manufacturing to perceived currency manipulation. Sen. Ron Wyden, D-Ore., has been among the most vocal critics of the price of solar panels coming into the American market. He recently wrote President Obama a letter saying the administration should impose a heavy tariff on panels coming in from China.
The International Trade Commission has 45 days to issue its preliminary determination, while the Department of Commerce has 180 days for the preliminary determination. The cases generally take 15 months for final determination. The prices for Chinese solar panels could be between 20 and 300 percent more expensive, sources have said.
A ruling at the higher level could effectively shut out competition from the Chinese market. It also opens up the possibility that China could retaliate against U.S.-based manufacturers that depend on Chinese panelmakers and cell manufacturers, such as the polysilicon industry.
According to a recent report released by SEIA, the U.S. was a net exporter to China in 2010, so such a move could strain or potentially jeopardize many of the relationships between American and Chinese companies.
The petition was filed jointly with the Department of Commerce (DOC) and the United States International Trade Commission (ITC). According to sources, it is likely that the DOC and the ITC acted in an advisory role regarding the law and the process prior to the claim being filed. Both organizations now will shift to a fact-finding mode.
The ITC must make its preliminary determination based on three measures of injury:
Chinese panelmakers and/or cell manufacturers could file for an appeal through the World Trade Organization, which could work to find a resolution.
http://www.renewableenergyworld.com/rea/news/article/2011/10/us-solar-companies-file-lawsuit-against-chinese-panelmakers
SolarWorld, which employs more than 1,000 workers at its Oregon headquarters and manufacturing facility, is the only company named in the trade complaint. The other six remain anonymous, which is allowed by the Department of Commerce. The group on Wednesday launched the Coalition for American Solar Manufacturing.
Trade complaints are not uncommon. However, according to industry sources, the sheer level of inventory and dollars at stake, and the vast potential of a future market, could make this among the most divisive trade complaints filed in recent years.
In response to the news, Rhone Resch president and CEO of the Solar Energy Industries Association (SEIA) said that his organization "will continue to support open markets based on free and fair trade principles." SEIA believes that is is crucial for governments and private organizations, however, to "operate within the framework of internationally-negotiated trade rules.
“If it appears that trade obligations are not being met, solar companies – whether foreign or domestic — have the right to request an investigation into alleged unfair trade practices. These allegations must be thoroughly examined and, if unlawful trade practices are found, action to remedy those practices should be taken," he added.
Politically, some Republican presidential candidates and Congressional lawmakers on both sides of the aisle have indicated support for a more hardline stance against China over issues ranging from manufacturing to perceived currency manipulation. Sen. Ron Wyden, D-Ore., has been among the most vocal critics of the price of solar panels coming into the American market. He recently wrote President Obama a letter saying the administration should impose a heavy tariff on panels coming in from China.
The International Trade Commission has 45 days to issue its preliminary determination, while the Department of Commerce has 180 days for the preliminary determination. The cases generally take 15 months for final determination. The prices for Chinese solar panels could be between 20 and 300 percent more expensive, sources have said.
A ruling at the higher level could effectively shut out competition from the Chinese market. It also opens up the possibility that China could retaliate against U.S.-based manufacturers that depend on Chinese panelmakers and cell manufacturers, such as the polysilicon industry.
According to a recent report released by SEIA, the U.S. was a net exporter to China in 2010, so such a move could strain or potentially jeopardize many of the relationships between American and Chinese companies.
The petition was filed jointly with the Department of Commerce (DOC) and the United States International Trade Commission (ITC). According to sources, it is likely that the DOC and the ITC acted in an advisory role regarding the law and the process prior to the claim being filed. Both organizations now will shift to a fact-finding mode.
The ITC must make its preliminary determination based on three measures of injury:
- Whether the volume of imports is significant
- Whether the prices of those imports represents underselling, depresses prices or prevents price increases
- Whether the imports have a negative impact on domestic producers and production.
Chinese panelmakers and/or cell manufacturers could file for an appeal through the World Trade Organization, which could work to find a resolution.
http://www.renewableenergyworld.com/rea/news/article/2011/10/us-solar-companies-file-lawsuit-against-chinese-panelmakers
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