Divided U.S. solar sector debates tariffs at hearing (updated)

Shunfeng International Clean Energy

03/10/2017 18:16

(Adds testimony from hearing, industry group's prepared 
remarks) 
    By Nichola Groom 
    Oct 3 (Reuters) - U.S. solar manufacturers seeking tariffs 
and other trade remedies on cheap foreign-made panels made their 
case to a government commission on Tuesday, saying competition 
from China and elsewhere has left the domestic industry on the 
verge of collapse. 
    The closely-watched trade case before the U.S. International 
Trade Commission has pitted the nation's solar installers and 
developers against two struggling domestic panel makers. 
Installers rely on cheap panels to build projects that are cost 
competitive with natural gas and coal plants.  
    After ruling unanimously last month that domestic producers 
have been harmed by imports, the commission now must decide what 
trade remedies to recommend to President Donald Trump, who will 
make a final decision later this year. The ITC must deliver its 
report to the president by Nov. 13.  
    Suniva and SolarWorld, which are both foreign-owned but 
manufacture panels in the United States, delivered testimony on 
Tuesday asking for four years of expanded tariffs, plus either a 
price floor on panels or an import quota. 
    "Tariffs alone will not remedy the serious injury you 
found," Suniva attorney Matthew McConkey told the commission. 
    In documents filed with the commission last week, Suniva 
asked for a tariff of 25 cents per watt on solar cells and 32 
cents per watt on panels. The manufacturer is also seeking a 
minimum price on panels of 74 cents a watt, nearly double their 
current cost.  
    Existing tariffs on solar products from China and Taiwan 
have been insufficient to protect the domestic industry, Suniva 
said. Suniva is majority owned by Shunfeng International Clean 
Energy  1165.HK  and SolarWorld AG  SWVKk.F  is based in 
Germany. 
    The Solar Energy Industries Association, the sector's 
primary trade group, opposes Suniva's petition.  
    SEIA has not yet testified before the commission, but a copy 
of the group's prepared remarks, provided to Reuters, argued 
that higher prices will hurt both installation companies and 
manufacturers because demand would suffer and prompt widespread 
job losses. 
    "These job losses are far, far in excess of any limited job 
gains the domestic cell and module industry might obtain based 
on optimistic projections," SEIA attorney Matthew Nicely said in 
the prepared statement. "In other words, the costs outweigh the 
benefits." 
    As remedies, SEIA suggested federal technical assistance and 
job training programs as well as a modest import licensing fee 
that would benefit U.S. manufacturers. 
 
 (Reporting by Nichola Groom; Editing by Sue Horton and Rosalba 
O'Brien) 
 ((nichola.groom@thomsonreuters.com;)) 
 
Keywords: USA TRADE/SOLAR