ITC Finds Injury in Solar Cell Safeguard Investigation, Paving Way for New Trade Restrictions
The International Trade Commission reached an affirmative injury determination in its Section 201 safeguard investigation on crystalline silicon photovoltaic (CSPV) cells, the ITC announced Sept. 22. Section 201 allows the president to impose tariffs on all imports of products the ITC finds to injure U.S. industry. The investigation now moves to a remedy phase, wherein the ITC will hold a hearing on Oct. 3 to determine what remedies should be imposed, and is expected to send the president its final report -- to include potential recommendations for remedial action -- by Nov. 13. President Donald Trump will then have about two months to adopt or reject the ITC’s recommendations, or opt to set other trade restrictions.
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Suniva’s April 26 petition to the ITC, subsequently joined by SolarWorld, requested four years of duties on imports of CSPV cells starting at $0.40 per watt, and a minimum price for solar modules starting at $0.78 per watt, to decrease in the second year to a duty of $0.37 per watt and a price floor of $0.72 per watt; $0.34 per watt and a minimum price of $0.69 per watt in year three; and $0.33 per watt and a price floor of $0.68 per watt in the fourth year (see 1704260045).
Suniva requested that the safeguard duties would apply to all imported modules, laminates and panels, regardless of origin, including those produced in any third country from cells produced in any third country, but not modules, laminates and panels produced in a third country from cells produced in the U.S. Safeguard duties may be imposed initially for up to four years, and if extended, a maximum of eight years total.
In a statement, Solar Energy Industries Association CEO Abigail Ross Hopper said that “analysts” claim the petitioned remedies would double the “price of solar,” destroy two-thirds of demand, “erode” billions of dollars in investment, and “unnecessarily force” 88,000 Americans to lose jobs next year. “While we continue to believe that this is the wrong decision, based on Suniva and SolarWorld’s mismanagement, we respect the commission’s vote and we will continue to lead the effort to protect the solar industry from damaging trade relief,” she said. “We expect to be front and center in the ITC remedy process, and in the administration’s consideration of this deeply-flawed case.” Nearly 70 congressional lawmakers in August urged the ITC to reject Suniva’s petition, saying the sought tariffs and price floors are too high (see 1708140025).
SolarWorld Americas, the largest U.S. crystalline silicon solar technology manufacturer, commended the ITC’s 4-0 vote, noting ITC data showing almost 30 U.S. solar panel producers stopped manufacturing operations between 2012 and 2016, and that global imports increased almost five-fold during that period. ITC data also shows CSPV cell imports from China rose by more than 700 percent over those years, SolarWorld said.
“On behalf of the entire solar cell and panel manufacturing industry, we welcome this important step toward securing relief from a surge of imports that has idled and shuttered dozens of factories, leaving thousands of workers without jobs,” SolarWorld Americas CEO Juergen Stein said in a statement. “In the remedy phase of the process, we will strive to help fashion a remedy that will put the U.S. industry as a whole back on a growth path. We will continue to invite the Solar Energy Industries Association (SEIA) and our industry partners to work on good solutions for the entire industry. It is time for the industry to come together to strengthen American solar manufacturing for the long term.”