The Commerce Department of US has concluded a long awaited speculation by imposing steep duties on solar products from China and Taiwan, reports The New York Times.
The decision is aimed to close a loophole in an earlier rule implemented in 2012 according to which, Chinese manufacturers avoided tariffs imposed in using Taiwan manufactured cells.
It has been revealed that the companies were selling products much lower than the manufacturing cost and the Chinese companies were benefiting from biased subsidies allowed by their government.
The department announced anti-dumping duties of 26.71 percent to 78.42 percent on imports of most solar panels made in China, and rates of 11.45 percent to 27.55 percent on imports of solar cells made in Taiwan.
In addition, the department announced anti-subsidy duties of 27.64 percent to 49.79 percent for Chinese modules.
“These remedies come just in time to enable the domestic industry to return to conditions of fair trade,” said Mukesh Dulani, president of SolarWorld Americas. “The tariffs and scope set the stage for companies to create new jobs and build or expand factories on U.S. soil.”
The duties, which will affect companies including China’s Trina Solar and Suntech Power and Taiwan’s Motech Industries, must still be confirmed by the U.S. International Trade Commission, which should be done by Jan. 29.
However, experts are of the opinion that imposing taxes will have an adverse consequence on the growth of solar energy in a global level, limiting competition and increasing prices.
The pledges made by the U.S. and China to work together in the battle against global warming will be affected to an extent.
From 2012, the Commerce Department began imposing tariffs on Chinese imports, later expanding to the imports from Taiwan, leading to tariffs of about 19 to 55 percent.
The flow of inexpensive Chinese solar products have pushed many American manufacturers out of business, but developers and installers offered their services at reduced prices at that time.
However, it remains a fact that this reduced price has led to increased adoption of solar energy creating thousands of jobs in US.
China accounts for 114 of the 283 anti-dumping and countervailing duty orders the United States has on foreign goods.
Malaysia will be the most benefitting country from these trade wars, the second-largest exporter of solar panels to the United States, after China and Taiwan.
On the other hand, Commerce Ministry of China condemned the decision strongly.
Solar panel manufacturing “is a strategic emerging industry related to global sustainable development. China urges the U.S. to solemnly consider the serious consequences caused by the U.S. ruling, to strictly comply with international rules and regulations, and to adopt a responsible attitude and behavior to appropriately manage trade frictions,” stated the press release from the ministry.
Sabeena Wahid
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