Solar Trade Dispute: What Is the U.S. Thinking?

[kristopher]

Solar Trade Dispute: What Is the U.S. Thinking?
By David Toke
December 7, 2011

As if it was not bad enough that European states are clawing back on the solar feed-in tariff subsidy rates, the U.S. is moving towards artificially increasing prices of solar panels by putting taxes on imported solar PV panels. I will explain that even more starkly: While Europe is still subsidizing solar PV panels; the U.S. is going to tax them!

The U.S. International Trade Commission has, according to RenewableEnergyWorld.com, "unanimously determined that Chinese solar panel and cell imports are harming the American solar manufacturing industry." This, it seems, is a precursor of import duties being levied on solar panels imported from China. To add an ironic twist, some U.S.-based solar companies themselves are promoting this policy. They argue that China is "dumping" lots of solar panels on the U.S. market and putting them out of business.

Essentially, Chinese manufacturers are selling their panels at cheaper prices. Partly this is a case of the Chinese having the foresight to invest in green industries, and this is also part of a normal business cycle when periodically supply exceeds demand, as opposed to demand exceeding supply, which pushes prices up.

However, if the solar industry is effectively arguing that prices must be increased with protectionism, it is contradicting its ultimate goal to drive down global prices for renewable energy technologies. The U.S. position is also sacrificing solar technology progress for protectionist purposes. This comes at a time when trade policies should be as internationalist as possible to avoid the selfish nationalism of the 1930s – which caused much destruction. If the allegedly idealistic renewable energy industries cannot hold the line on this, who can?

As far as I can see ...

http://www.renewableenergyworld.com/rea/blog/post/2011/12/solar-trade-dispute-what-is-the-u-s-thinking?cmpid=SolarNL-Thursday-December8-2011