U.S. trade panel set to recommend solar trade tariffs

Solarworld AG

31/10/2017 10:00

By Nichola Groom 
    Oct 31 (Reuters) - Federal trade officials on Tuesday will 
recommend measures to safeguard struggling domestic solar panel 
manufacturers against cheap imports in a closely watched case 
that could have a major impact on the price of U.S. solar power. 
    The vote by the U.S. International Trade Commission is a 
major milestone in a case that has divided the solar industry 
for the last six months. The panel's proposals, which could 
include tariffs, a quota or other trade remedies, will be 
delivered to President Donald Trump, who will make a final 
decision later this year.     
    Trade remedies were requested earlier this year by two small 
U.S. manufacturers that say they are not able to compete with 
cheap panels made overseas, mainly in Asia.  
    But fears of steep new tariffs on imports have sparked 
widespread nervousness among solar developers and installers 
that have benefited from a 70 percent drop in the cost of solar 
since 2010. Many snapped up panels ahead of the ITC's vote and 
warned that some projects may not be completed if the cost of 
panels rises too much. 
    The ITC made a preliminary finding on Sept. 22 that domestic 
solar manufacturers had been harmed by cheap imports after the 
complaint brought by bankrupt Georgia-based producer Suniva Inc 
in April. 
    Solar installation companies are hoping the commission will 
recommend a small tariff, or none at all. 
    "This tells you what's going to land on the president's 
desk, though there is a fair amount of unpredictability here 
given that the president has wide leeway and this president is 
pretty unpredictable in general," said Shayle Kann, head of 
solar market research firm GTM Research.     
    Suniva filed the rare Section 201 petition nine days after 
seeking Chapter 11 bankruptcy protection. In the petition, the 
company said a global glut of panels has depressed prices and 
made it difficult for American producers to compete. 
    Suniva's petition is opposed by the Solar Energy Industries 
Association, the sector's primary trade organization. 
    Suniva is majority owned by Hong Kong-based Shunfeng 
International Clean Energy  1165.HK . It was joined in the 
petition by another domestic manufacturer, the U.S. division of 
Germany's SolarWorld  SWVKk.F . 
    In documents filed last month, Suniva asked for a tariff of 
25 cents per watt on solar cells and 32 cents per watt on 
panels. It is also seeking a minimum price on panels of 74 cents 
a watt, nearly double their current cost. SolarWorld has asked 
for an import quota. 
 
 (Reporting by Nichola Groom; Editing by Sue Horton and Dan 
Grebler) 
 ((nichola.groom@thomsonreuters.com;)) 
 
Keywords: USA TRADE/SOLAR