Sept 30 (Reuters) - U.S. trade officials this week may
impose new tariffs on solar panels from four Southeast Asian
nations that American manufacturers have complained employ
unfair subsidies that make U.S. products uncompetitive.
The announcement, due on Tuesday, is the first of two
preliminary decisions the Commerce Department will make this
year in a trade case brought by Korea's Hanwha
Qcells, Arizona-based First Solar ( FSLR ) and several smaller
companies seeking to protect billions of dollars in investments
in U.S. solar manufacturing.
The domestic producers argue that competition from cheap
imports by Chinese companies operating in Malaysia, Vietnam,
Thailand and Cambodia threatens U.S. President Joe Biden's goal
to boost domestic manufacturing of clean energy technologies
needed to combat climate change.
"They are hopeful that these cases will help to level the
playing field," Tim Brightbill, the group's attorney, said in an
interview last month.
Commerce's decision will for the first time consider the
impact of cross-border subsidies, for instance the Chinese
government subsidizing a manufacturer in Vietnam or elsewhere.
Such countervailing duties had previously been banned but this
year the department finalized a rule that allowed them.
In its April petition, the Hanwha-led American Alliance
for Solar Manufacturing Trade Committee alleged that Chinese
manufacturers operating in the four Southeast Asian countries
received generous subsidies from those governments in the form
of cheap financing, electricity and land, tax exemptions and
more. The group also alleged the companies receive subsidies
from China like cut-rate raw materials and components as well as
other support via its Belt and Road Initiative, a decade-old
infrastructure program to link China with Asia, the Middle East
and Europe.
A companion anti-dumping case is expected to receive a
preliminary decision in November. Countervailing duties tend to
be lower than anti-dumping duties, a form of tariff meant to
keep overseas producers from selling at below market prices.
The U.S. already collects an array of duties on solar
imports.
Not all U.S. solar manufacturers want Commerce to impose new
tariffs on solar imports.
Companies setting up panel factories, for instance, rely on
low-cost solar cells from Southeast Asia to assemble into panels
in the U.S. Many U.S. panel plants are owned by large
China-based manufacturers.
Solar project developers also worry that tariffs will hurt
their business by driving up the cost of panels, which are
already more expensive in the U.S. than anywhere else in the
world.
"Imposing tariffs on solar cell imports - when there's
currently no solar cell manufacturing in the U.S. - will only
enhance the profits of incumbent manufacturers, and will stifle
America's ability to onshore the solar supply chain and meet the
fast-growing demand for clean, affordable and reliable power
supply" said Jim Murphy, president of Invenergy, a Chicago-based
project developer that is also the joint owner, with China's
Longi, of Ohio solar panel maker Illuminate USA.