The U.S. Commerce Department on Wednesday announced duties on solar panels
imported from China, reaffirming a preliminary ruling earlier this year in
favor of domestic suppliers.
A coalition of U.S. solar panel manufacturers, including Helios Solar
Works in Milwaukee, had sought the tariffs alleging that the Chinese
manufacturers were flooding the U.S. market with panels that were being sold
for less than they cost to produce -- a violation of fair-trade laws.
The tariffs range from 18.3% to 250%, depending on the company, for
anti-dumping tariffs, and about 15% in addition for "anti-subsidy duties,"
according to The Associated Press.
The case was brought by SolarWorld, a German-based company that has a big
factory in Oregon. Helios opened its factory in the Menomonee Valley early
last year but was forced to scale back production and lay off workers when
Chinese producers dropped their prices.
The trade dispute has ended up pitting Helios, SolarWorld and other
domestic producers against solar panel installers that are expecting a bigger
market for solar installations as prices drop.
The duties aim both to penalize the Chinese companies for selling the
panels below their cost of production and to take further steps to offset
Chinese government subsidies for the panels.
The domestic manufacturers said the influx of low-cost Chinese panels has
led to the shutdown or scaling back of more than a dozen factories in the
United States, including the closing of factories recently in New Mexico and
Tennessee.
They said terms of the Commerce Department's ruling left the door open to
more challenges for the domestic industry because a loophole could allow
Chinese manufacturers to avoid the duties if they incorporate cells produced
outside China in their panels.
Helios chief executive Steve Ostrenga said he was disappointed with the
ruling and is hopeful that the company, which now employs 28 people, would be
able to expand.
"We remain confident that American manufacturers can compete with China
on an equal footing," Ostrenga said in a statement. "Helios . . . is in this
battle to win it. Assuming an adequate response from the Obama administration
on enforcement, we have some hope that there will continue to be a viable
solar manufacturing base in the United States."
The decision comes as President Barack Obama and his Republican
challenger, Mitt Romney, have sparred over whether the administration has
taken a tough enough stance in trade disputes with China.
Helios and SolarWorld are members of the Coalition for American Solar
Manufacturing. On the other side of the debate is the Coalition for Affordable
Solar Energy, which includes companies like California-based SunEdison. That
coalition argues the tariffs will drive up prices for homeowners who want to
install solar panels.
Testifying in Washington last week, Ostrenga said his firm had to stop
producing one kind of panel, lay off workers and shift to production of larger
panels. Its customers include U.S. military bases.
"We do not want our fate to be like that of so many other U.S. producers
that have been forced to idle facilities or cease U.S. production altogether
as a result of Chinese imports," Ostrenga testified. "We believe American
manufacturers certainly can compete with fairly traded solar cell and module
imports."
The Commerce Department said earlier this year that solar imports from
China totaled $3.1 billion, more than double the value of solar imports from
the prior year, according to Bloomberg News.
"Commerce's announcement will likely raise already-high tensions between
the U.S. and China over subsidies and trade in green goods," said Scott
Lincicome, international trade attorney at White & Case, in a statement.
SunEdison and its supporters accuse SolarWorld, Helios and their allies
of launching a trade war.
The affordable solar coalition released a statement from Jigar Shah, its
president, saying, "We remain concerned about the growing global trade war,
which will only hurt American solar industry jobs, growth and consumers."
Another manufacturer in the renewable-energy field, Broadwind, makes wind
towers at its factory in Manitowoc.
