Press Release: CPA Supports Solar Cell Manufacturers' Trade Cheating Case

September 07, 2017

Subsidized Imports Have Devastated the U.S. Industry

Washington~ The Coalition for a Prosperous America (CPA) submitted a letter to the International Trade Commission in support of the Section 201 petitions filed by SolarWorld and Suniva. This trade enforcement case is pending before the US International Trade Commission which must decide whether a massive solar cell import surge poses a substantial threat of serious injury to the domestic industry. CPA strongly believes that relief is needed in the face of an Asian import surge to prevent the complete collapse of a critical industry, the manufacture of solar panels. 

The letter states in part: 

U.S. producers have suffered tremendous financial losses, declared bankruptcy, and closed facilities. Between 2012 and 2016, nearly 30 U.S. solar manufacturing companies closed their doors. Domestic producer market share declined.  Hundreds of workers have lost good paying U.S. manufacturing jobs as a result. That these severe effects occurred during a period of booming U.S. demand, and despite two successful solar trade cases, is all the more troubling and simply underscores the urgent need for trade relief in this case.

"China's five year economic plans have targeted and taken out too many American industries," said Michael Stumo, CEO of CPA. "This solar cell manufacturing trade enforcement action provides an avenue to prevent the demise of yet another industry."

China and Taiwan were found to have subsidized and dumped solar cells in the US market twice in the last four years. However, Chinese companies avoided the duties by adding manufacturing capacity in other Asian countries. US trade agreement countries - such as South Korea, Canada and Mexico - have also added to the global overcapacity.

CPA’s economic work reveals that excessively ceding production to other countries in exchange for low consumer prices (1) reduces jobs; (2) reduces wages in affected industries and in affected supply chains and communities; (3) eliminates future innovation; and (4) forecloses future industries that would otherwise be built from the lost industries. Losing domestic production also increases the risk of future monopolistic price increases by foreign producers.

About CPA: The Coalition for a Prosperous America is the nation’s premier organization working on the intersection of trade, jobs, tax and economic growth. We represent the interests of 2.7 million households through our agricultural, manufacturing and labor members. 

Contact Paola Masman

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