The U.S. Department of Commerce announced on Tuesday (February 24th) that it will impose preliminary countervailing duties on solar cells and solar panels imported from India, Indonesia, and Laos.
According to the information sheet published on the Department of Commerce’s website, the general subsidy rates for products imported from India, Indonesia, and Laos are 125.87%, 104.38%, and 80.67%, respectively.
Government trade data shows that last year, the total amount of solar products imported from these three countries to the United States reached $4.5 billion, accounting for approximately two-thirds of the total imports of solar products.
According to Reuters, this announcement is the first of two decisions expected to be issued by the Department of Commerce in the coming weeks, stemming from a trade case brought by the “Alliance for American Solar Manufacturing and Trade.” The alliance members include Hanwha Qcells from Korea, First Solar based in Arizona, and Mission Solar Company headquartered in San Antonio. These companies are seeking protection for their multibillion-dollar investments in American factories.
The “Alliance for American Solar Manufacturing and Trade” submitted a request to the U.S. government in July last year, accusing Chinese companies of shifting production from countries previously affected by U.S. tariffs to Indonesia and Laos. They also accused manufacturers based in India of dumping cheap goods into the U.S. market. The alliance had previously succeeded in getting the U.S. to impose tariffs on imports from Southeast Asian countries including Malaysia, Cambodia, Vietnam, and Thailand.
Tim Brightbill, the alliance’s chief lawyer, welcomed the decision announced by the Department of Commerce on Tuesday, calling it an “important step towards restoring fair competition.”
“American manufacturers are investing billions of dollars to rebuild domestic capacity and create high-paying job opportunities. If unfair import trade is allowed to distort the market, these investments cannot succeed,” he said in a statement.
In addition to the general rates, the Department of Commerce also calculated separate rates for some companies in India, Indonesia, and Laos. These include Mundra Solar from India, PT Blue Sky Solar and PT REC Solar Energy from Indonesia, and Solarspace Technology Sole Co and Vietnam Sunergy Joint Stock Company in Laos.