Tag Archives: Chinese

global

GPEC position aligned with WTO ruling on tariffs

A ruling by the World Trade Organization earlier last week affirmed the position the Greater Phoenix Economic Council held in 2012, opposing the countervailing duties placed on Chinese-manufactured solar panels.

The ruling by the World Trade Organization (WTO) counters the position taken by the International Trade Commission (ITC) in 2012, which imposed tariffs on Chinese-manufactured photovoltaic cells and modules. In a formal letter to the US Department of Commerce, the Greater Phoenix Economic Council (GPEC) strongly opposed the tariffs on the grounds the duties would have a detrimental effect on the existing solar and renewable energy industry in the Greater Phoenix region.

“We are encouraged by the decision of the WTO, and are optimistic the US will move quickly to reverse its course on these tariffs,” said Barry Broome, president and CEO of the Greater Phoenix Economic Council. “Our state leaders have enacted sound pro-business policies, including renewable energy tax credits, which have resulted in significant investment to the region. The 2012 decision by the ITC was completely antithetical to those efforts.”

The ITC is currently considering additional rounds of countervailing duties on solar goods from China; however the recent announcement from the WTO suggests bringing the US measures in line with the ruling offered by the WTO.

For additional information on GPEC’s previous statements regarding this issue, please visit www.gpec.org/tariff.

Solar Power

Suntech closing Goodyear factory

Chinese solar panel maker Suntech Power Holdings Co. is closing its factory in Goodyear in part because of higher production costs.

The broader solar industry has struggled in recent years due to a steep price drop for solar panels. Global demand for panels has languished in Europe and elsewhere, even as manufacturing capacity soared.

Suntech’s solar panel manufacturing plant, which opened in October 2010, had 43 employees. The facility’s peak production was 50 megawatts per year in 2011. This was scaled back to 15 megawatts per year in November.

Suntech said Tuesday that the increased production costs were made worse by import tariffs on solar cells and aluminum frames imposed by the U.S. government and global solar module oversupply.

In November the U.S. International Trade Commission voted to impose unilateral tariffs of 35.97 percent on Suntech solar cells made in China. Suntech said these solar cells are a key component used at its Goodyear factory.

The company also said that the factory’s closing is in line with its restructuring efforts to rationalize production capacity and cut operating expenses by 20 percent this year.

U.S.-traded shares of Suntech fell 7 cents, or 6.1 percent, to $1.08 in midday trading. The stock has traded in a 52-week range of 71 cents to $3.68.