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US launches probe into Thai solar cells

US launches probe into Thai solar cells

The US Commerce Department has launched investigations into anti-dumping (AD) and countervailing duty (CVD) practices related to solar cell imports from Southeast Asian countries, including Thailand.

In April 2024, domestic producers of crystalline silicon photovoltaic (CSPV) cells and modules filed a petition with the US Commerce Department and the US International Trade Commission, aiming to address alleged dumping of these products from Cambodia, Malaysia, Thailand, and Vietnam. They claimed that such practices undermine domestic manufacturing efforts and significantly harm the US solar manufacturing industry.

Furthermore, the petitioners accused the Thai government of providing subsidies for exports to the US.

In response to the petition, Noppadon Kuntamas, deputy director-general of Thailand’s Foreign Trade Department, announced on May 15 that the US Commerce Department would initiate an investigation into AD and CVD regarding CSPV solar cells from the four countries.

On October 1, the US revealed preliminary affirmative findings in the CVD investigation, stating that solar cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam are “being sold, or are likely to be sold,” at prices lower than fair value in the US.

Additionally, a preliminary affirmative determination was made regarding the potential existence of countervailable subsidies for these solar cells and modules.

For Thai solar cell products, the subsidies were assessed to be between 0.14% and 34.5%, which is considered a “very low level” and categorized as de minimis, indicating that no CVD duty will be imposed.

In contrast, the US plans to apply retroactive duties for a period of up to 90 days for other countries at the preliminarily determined rates of dumping or subsidization: Cambodia at 8.25% to 68.5%, Malaysia at 3.47% to 124%, and Vietnam at 0.81% to 293%.

Mr. Noppadon highlighted that the US represents Thailand’s largest export market for solar cell products, making up 75.3% of shipments. In 2023, Vietnam emerged as the largest supplier of solar cell products to the US, with a 27.1% market share, followed closely by Thailand at 24.7%.

A final determination regarding the investigations is expected to be released in February or March of next year. The Foreign Trade Department stated that it will work closely with relevant government agencies to safeguard the interests of Thai exporters.

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