U.S. solar manufacturers appeal to Trump team for stiff tariffs

Solarworld AG

06/12/2017 21:04

By Nichola Groom 
    Dec 6 (Reuters) - Struggling U.S. solar panel makers on 
Wednesday made a final plea to President Donald Trump's key 
trade policy advisers to support steep tariffs on foreign-made 
solar products, ahead of his imminent decision in a closely 
watched trade case. 
    Suniva and SolarWorld, which say an influx of cheap solar 
panel imports from China have made them unable to compete, 
appealed to the Trade Policy Staff Committee to recommend 
stiffer measures than proposed by members of the bipartisan 
International Trade Commission (ITC) in October. 
    "Strong remedies are exactly what are required," Suniva 
Executive Vice President Matt Card told the committee at a 
hearing in Washington. "Unfortunately, right now, China is on 
the verge of winning their planned economic, energy and national 
security strategy for utterly destroying the U.S. solar 
manufacturing industry." 
    Trump's decision, expected early next year, could have a 
major impact on the price of U.S. power generated by the sun. 
While panel makers want less foreign competition, installation 
companies rely on low-priced imports to compete with fossil 
fuels and have argued against tariffs. 
    Bankrupt Suniva, which is majority owned by Hong Kong-based 
Shunfeng International Clean Energy Ltd  1165.HK , requested 
trade remedies in a rare Section 201 petition to the ITC earlier 
this year. The U.S. arm of Germany's SolarWorld AG  SWVKk.F  
joined the petition shortly after. 
    The Section 201 process is unusual because the president, 
rather than trade officials, makes the final decision. 
    The ITC's four-member panel made three different 
recommendations for restricting solar cell and panel imports, 
giving Trump a range of choices. The Trade Policy Staff 
Committee, comprising representatives from 19 executive branch 
agencies and chaired by top Trump trade advisor Robert 
Lighthizer, will make its own proposal to the president. 
    In November, Lighthizer asked the ITC to send another report 
identifying "unforeseen developments" that led to the surge in 
solar panel imports into the United States. 
    That may help prevent potential tariffs from being 
challenged at the World Trade Organization, which has agreed 
with its member countries that safeguard actions be imposed only 
in the event of unexpected market developments, something U.S. 
law does not require. 
    SolarWorld and Suniva have argued that domestic 
manufacturers could not have foreseen China's massive investment 
in solar panel manufacturing capacity. 
    The ITC must deliver its supplemental report to the 
president later this month. 
     
     
 
 (Reporting by Nichola Groom; Editing by Richard Chang) 
 ((nichola.groom@thomsonreuters.com; +1-213-955-6755)) 
 
Keywords: USA TRADE/SOLAR