Renewable Sun Energy Final Dumping And Subsidies
Renewable energy was to be the future for man's thirst for power. Alas, at least for that derived from the sun, it has become bogged down in a squabble that continues to play out in the international trade arena. The U.S. Department of Commerce ("Commerce") on October 10, 2012 released its final affirmative determinations in the antidumping duty and countervailing duty investigations of Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People's Republic of China. Commerce determined that Chinese producers/exporters have sold solar cells in the United States at dumping margins ranging from 18.32 to 249.96 percent ad valorem, and received countervailable subsidies of 14.78 to 15.97 percent ad valorem.
The petitioner for these investigations is SolarWorld Industries America Inc. The U.S. solar industry is seriously split by this trade spat over Chinese dumping and subsidization. The dispute has spilled into the political season with both presidential candidates sparring over it. The industry disagreement is between makers of U.S. equipment who are hurt by Chinese low pricing of solar cells and U.S. installers and distributors who see their sales hurt by higher prices. Competitive pricing is needed to make solar a go against other forms of energy, especially the well-established carbon-based forms, but U.S. jobs and trade fairness are issues as well. A consensus of some kind appears to be needed. But as Mr. Burns noted, there typically is only grief and pain in place of planned joy.
With respect to Commerce's final dumping investigation, the investigated companies with the collapsed names of Wuxi Suntech received a rate of 31.73 percent, close to their preliminary rate, while Trina Solar managed to halve its preliminary rate to 18.32 percent. The separate rate for 59 other Chinese producers and exporters who came forward declined from a preliminary rate of 31.18 percent to 25.96 percent. The PRC-wide rate for all other Chinese producers and exporters was is unchanged at 249.96 percent. (See one of our previous posts for a discussion of Commerce's preliminary dumping determination).
With respect to Commerce's final subsidy...
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