Trade War: India’s anti-dumping investigation may reach verdict next week.

According to the Indian Solar Independent Power Producers Association (SIPPA) the deadline for anti-dumping investigation evidence submissions is today, moved from 25 July and a final decision could be made as early as next week.

In November 2012, the solar manufacturers association (SMA), representing three domestic solar manufactures, Indosolar, Jupiter Solar Power and Websol, submitted a petition to investigate the dumping of PV products from China, Taiwan, Malaysia and the US. Last month the investigation expanded to include the EU and Japan. Bloomberg has reported that a decision could now be imminent.

The SMA alleged that thin-film and silicon PV cells and modules imported into India from the USA and other Asian countries were being sold at low prices, violating fair trade regulations.

SIPPA, which represents developers in India, argued against dumping duties as petitioned by the SMA. The investigation has torn the Indian solar market in two – between manufacturers and developers.

A preliminary hearing was held on the 18 July, where enough prima-facie evidence was found to suggest the domestic solar manufacturing industry of India was being damaged.

The investigation still has to determine a fair percentage for anti-dumping duties, the SMA has petitioned for 40-200% depending on the country, and Bridge to India has suggested a 20% duty to satisfy both parties.

The ministry of commerce overseeing the investigation declined to comment.

Analyst firm Bridge to India has said the SMA claim is supported as most of the accused foreign cell manufacturer’s respondents “have suffered significant financial losses in the past two years by selling at unviable prices”, according to its weekly analysis.

However the case from developers that the price of solar power will go up with anti-dumping duties, harming the industry “holds little ground as far as the proceedings are concerned".

If the investigation proposes anti-dumping duties, Indian cell and module manufacturers will gain, but developers with projects still under construction in many parts of India may be at risk of “being squeezed between commissioning deadlines and a rise in prices which might make many projects non-viable".

According to Bridge to India anti-dumping duties could create “insulated zones of limited competition, allowing higher-cost manufacturers to survive, driving up the cost of solar power” also threatening employment, solar price parity and India’s future progress and competitiveness internationally.

Bridge to India has suggested if "India wants to support a domestic solar industry; it should look not towards cell and module manufacturing, but towards the downstream employment, towards the balance of systems and towards innovation” and that overall the government’s efforts “should go towards fostering innovation in India to provide solar solutions".

There are also still doubts as to whether the investigation follows the World Trade Organisation (WTO) standards, the SMA could be deemed as misrepresenting the market in its limitated representation of three manufacturers.

Source : pv-tech.org