Settling a year-long trade dispute, the U.S. government took the final step Wednesday toward imposing steep tariffs on solar panels imported from China. But will these tariffs make a difference?
6:23PM EST November 7. 2012 - The U.S. government cleared the way Wednesday for imposing steep tariffs on solar panels imported from China, but analysts say the impact may be marginal because the tariffs were expected and contain a loophole.
The International Trade Commission, an independent federal agency, voted unanimously that China's subsidies for its solar manufacturers had harmed the U.S. solar industry. Its decision allows the final tariffs approved last month by the U.S. Commerce Department to take effect.
The U.S. government had begun earlier this year to collect those tariffs, ranging from 24% to 36% on solar panels imported from five dozen Chinese manufacturers and up to 255% for other Chinese suppliers, but it was holding them as deposits until the final ITC ruling.
"This makes final what had already been happening," says Shayle Kann of GTM Research, a unit of GreenTech Media, arguing there won't be any immediate impact. Longer term, he says the impact may be blunted because the tariffs apply only to panels made up of Chinese-produced solar cells, allowing Chinese companies to avoid them by assembling panels with cells made elsewhere.
The year-long trade dispute began in October 2011 when a coalition of manufacturers led by SolarWorld, a German company with factories in the United States, filed a petition with the Commerce Department and the ITC. They alleged Chinese manufacturers were illegally dumping solar cells and panels in the U.S. market and receiving billions in illegal subsidies from their government.
After investigating the case, both Commerce and ITC issued preliminary rulings that agreed China's subsidies were illegal or threatening the U.S. solar industry. About a dozen U.S. solar manufacturers have gone bankrupt or significantly cut jobs since the beginning of last year.
The case, however, split the U.S. industry. Many solar companies, primarily those that design, market and install solar panels, argued the tariffs could raise panel prices, inflame trade tensions and stunt the industry's rapid growth.
"The U.S. pioneered this industry," but China tried to take it over with unfair subsidies, said Ben Santarris of SolarWorld, which pushed for tariffs. He welcomed ITC's final ruling but said it was difficult to predict its impact.
"The market already knew the tariffs were being collected," Santarris said.
Kevin Lapidus of SunEdison, which sells solar energy to utilities and businesses, said the tariffs had the potential to hike solar prices and lower consumer demand. Yet he doesn't expect that will actually happen.
"The global supply chain (for solar cells) will adapt and solar will continue to fall in price," said Lapidus, speaking on behalf of the Coalition for Affordable Solar Energy, which opposed the tariffs.
Lyndon Rive, co-founder of SolarCity, which installs solar panels, said in an interview earlier this year that he was confident his company would be able to work around the tariffs and still continue to expand.
Source: http://www.news.theusalinks.com/2012/11/07/u-s-finalizes-steep-tariffs-on-chinas-solar-panels/
0 comments:
Post a Comment