Invite: Fri March 16th - Solar Tariffs: Smart Policy or Protectionism?

The U.S. Department of Commerce is expected to announce a decision on March 19, 2012 on the issue of tariffs for Chinese-made silicon modules and cells in its investigation into whether to impose duties to offset the impacts of any illegal Chinese subsidies. If the agency finds in favor of the tariff, the effective date of duties under its critical circumstances finding would be in late December.

Proponents believes that this tariff would prevent the global solar manufacturing market from being dominated by China’s unfair trade practices, which they say has created a worldwide price decline of 40% in 2011 (despite rising demand) and closure or downsizing at seven US solar plants. Proponents, represented by the Coalition for American Solar Manufacturing (CASM) include Solar World which has a major plant in Oregon, but is located in Germany. CASM points to a spike in Chinese imports at the close of 2011, asserting that this was evidence of anti-competitive dumping in advance of tariff impositions.

Opponents of this tariff contends that the U.S. is a net-exporter of solar products to China by $200 million and a tariff would put this at risk. Opponents are represented by Coalition for Affordable Solar Energy (CASE). They note that less than 20% of jobs in the American solar industry are in manufacturing, while the majority of solar jobs lie in retailers, installers, service/support and engineers, and raw materials,  CASE commissioned a study by the Brattle Group which found that an 100% tariff on Chinese modules would cost as many as a net 60,000 jobs in the United States over three years and net economic losses amounting to between $698 million and $2.6 billion

Each side has a legitimate case. No one wants to see the establishment of a Chinese monopoly on silicon manufacturing, but no one wants to dampen the rate of installations.  Will the tariff raise prices for American consumers and cause US job losses  Or, will a failure to impose a tariff allow Chinese manufacturers to continue to dominate, and eventually monopolize, the PV market through unfair trade and subsidy practices?

Our Clean Energy Initiative will host a lunchtime panel discussion on this subject on Friday, March 16 at 12Noon.  Featured panelists will be: William Morin of Applied Materials, who will discuss the disruptions tariffs can have on the US solar industry and the overall value chain.  Lewis Leibowitz of Hogan Lovells LLC, who will talk about the impact of these cases on American manufacturers that depend on imports to be competitive in the marketplace and Elizabeth Drake of Stewart and Stewart LLC who will review why the trade remedy laws are an important tool for addressing trade distortions and remedying harm caused to domestic manufacturers by dumping and subsidies.  The panel discussion will be held at our event space located at 729 15th Street, Washington, DC.  PLEASE RSVP TODAY!