US and China close to formal trade settlement talks
The US and China are close to opening formal
negotiations based on the Solar Energy
Industries Association’s (SEIA) draft settlement of the ongoing solar trade dispute between the two
countries, according to officials from both sides.
The SEIA put together a six-page draft document at the end of summer 2013 with a view to
ending existing trade legislation and replacing it with a settlement fund that
Chinese manufacturers would pay into. The document was produced in an attempt to
bring an end to the long-running solar trade disagreement between the US and
China.
“It’s still very early stage. We think there is
a real opportunity to start a negotiating dialogue in the near term,” John
Smirnow, vice president of trade and competitiveness at SEIA told PV Tech. “I’m
not aware of any talks around any other proposal. As far as we know this is the
only thing people are working on now. We are working to get everyone in the
room, we don’t have a date yet, but we want to kick-start the negotiations.”
Smirnow also said the six pages had been
whittled down to one page of key conditions that has now been circultaed around
all parties.
Since the draft was put together, SolarWorld Americas has launched a new petition that would close
what it calls “a loophole” in existing US trade tariffs on Chinese
manufacturer.
The SEIA proposal would also include the
termination of this latest petition and Smirnow said SolarWorld was ready to
talk.
“We have an open dialogue with SolarWorld about
trying to get a negotiation started. SolarWorld has signalled that it is open to
negotiations,” he said adding that the SEIA's Chinese members had contributed to
the proposal as well.
Smirnow also said consultation with China’s
Chamber of Commerce Import and Export of Machinery and Electronic Products
(CCCME) were ongoing.
The CCCME, which represents the Chinese
manuafcturers, told PV Tech it was in the interest of both sides to find a
solution.
“We are still at very early stage with SEIA,” an
official said. “Like the case with the European Union, we always uphold the
industry through cooperation to resolve trade friction. If SolarWorld have any
ideas they can communicate them to our industry, we do not want it to use such
an extreme way to solve problems and cause trade friction. We hope to resolve
the friction through cooperation,” she said.
“SolarWorld has recently launched a new
investigation, we believe this is an abuse of the rules; the product range in
its complaint is very vague. Such investigation is for its own benefit. They put
aside the benefit of the photovoltaic industry of both countries.
“Having a growing shortage of fossil fuel energy, new energy is the future development direction; the photovoltaic industry is a very important branch of new energy. To initiate such an investigation not only harms the interests of the two countries, it will cause damage to the environment and new energy development. We are reluctant to see such things happen,” she added.
“Having a growing shortage of fossil fuel energy, new energy is the future development direction; the photovoltaic industry is a very important branch of new energy. To initiate such an investigation not only harms the interests of the two countries, it will cause damage to the environment and new energy development. We are reluctant to see such things happen,” she added.
The talks between the SEIA and CCCME were
alluded to by new Wuxi Suntech CEO Eric Luo during an interview with PV
Tech.
“I have seen the package deal, it is still under
discussion between SEIA and CCCME but I think it is highly possible that they
will strike a deal and present it to the US Department of Commerce,” he said. “I
hope they can reach a deal. Otherwise us module manufacturers will have too much
uncertainty. We are against any trade barrier.
“President Obama has a big renewable energy
policy and I don’t think this second investigation is helping anyone, SolarWorld
or Chinese manufacturers.”
Luo also revealed that the idea for a negotiated
settlement originally came from the US department of commerce following the conclusion of the EU-China trade talks. The Wuxi
Suntech CEO has vast experience of China's solar trade disputes and was one of
five industry representaitves that negotiated the EU-China deal alongside the
CCCME.
Article From PV
Tech
Access to more about
Landpower Solar Panel
Mounting: Solar Mounting Systems, Solar
Racking, Solar Hardware, PV
Mounting