Cambodian Solar Companies Abandon US Trade Investigation
In a surprise move, two major Cambodian solar companies, Solar Long and Hounen Solar, have announced that they will no longer participate in a US trade investigation into allegations of dumping solar panels on the market at below-production costs.
Withdrawal from Antidumping Probe
In separate letters dated October 15, the companies informed the Department of Commerce through their US attorney, Craig Lewis of Hogan Lovells, that they could no longer dedicate resources to the antidumping probe. This decision comes after the companies were selected as mandatory respondents in the investigation in June due to their significant export volumes to the United States.
Implications of Withdrawal
The withdrawal of these two major players from the investigation raises questions about the potential consequences for the companies and the US solar market. According to Tim Brightbill, an attorney for the American Alliance for Solar Manufacturing Trade Committee, “This is a significant development, because with both Cambodian respondents withdrawing from the antidumping investigation, they are failing to cooperate with the Commerce Department’s investigation.” Brightbill added that Commerce would likely penalize the Cambodian producers for withdrawing from the probe.
Background of the Investigation
The trade case, which began in April, was initiated by several domestic manufacturers who asked President Joe Biden’s administration to impose tariffs on products from Vietnam, Cambodia, Malaysia, and Thailand – the largest sources of solar panels in the United States. The investigation aimed to determine whether these countries were flooding the US market with solar panels at below-production costs.
Impact on US Solar Market
Solar imports from Cambodia have already decreased by approximately 37% this year, according to US Census Bureau data. The withdrawal of these two major companies from the investigation may further impact the US solar market, potentially leading to changes in tariff rates and trade policies.
Next Steps
While it is unclear whether the companies will continue to participate in the related anti-subsidy investigation, Commerce Department officials are expected to respond to the withdrawal and determine the next steps in the investigation. As the situation unfolds, industry stakeholders will be closely monitoring the developments and their potential implications for the US solar market.
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