Wednesday, November 7, 2012

ITC Makes Decision- Chinese Solar Gets Tariffs

Is this the end of the discussion? The International Trade Commission (ITC) voted unanimously that the imports of solar cells from Chinese manufacturers are harming U.S. solar manufacturers. The ruling will result in tariffs being added to any solar modules that include parts made in China. The ITC, however, did find any critical circumstances in this case, and therefore no tariffs will be applied retroactively.

This issue is far from black and white, as this article in Renewable Energy World, points out. Much like the classic debate of free market vs protectionism, new tariffs or restrictions will make new winners and new losers.

For instance, some US companies that currently import Chinese parts fear that they will shoulder the burden of these new tariffs. As E.L. "Mick" McDaniel, Managing Director of Suntech America said "the continued growth of trade barriers represents a serious challenge to the U.S. solar industry, for American jobs, and for energy consumers globally."

The underlying issue, however, is why the tariffs are even being considered. The ITC, is not reviewing the case simply for a "buy American" policy, but because there is a strong belief that Chinese companies are benefiting from Chinese government subsidies that throw that global solar market out of balance. Without something (like the US government) correcting for those imbalances, some might argue, US companies can't compete. As Gordon Brinser, President of SolarWorld America said, "Commerce's decision raises the industry's chances of reclaiming footing for domestic, sustainable and environmentally sound solar -technology producers and their jobs."

That being said, however, the tariffs would certainly add an additional incentive for American companies to "buy American." Where do you stand on this trade issue? Is this the way to make American solar companies and jobs competitive? Or is there a better way?


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