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Friday, May 18, 2012

Topic: Policy
Content Type: Opinion
Keywords: trade, solar, energy, solar panels

Do As I Say Not As I Do

Subsidies for me but not for thee

So, the US has imposed tariffs on Chinese-produced solar panels.

Why? Because China is subsidizing their production so much, that they can afford to sell their panels in the US for a lower price than US firms can sell them. Therefore everyone buys the Chinese panels and the US firms suffer. It's called dumping.

What's bizarre is that the US subsidizes its own production (has anyone heard of Solyndra?) I guess this means we're not subsidizing as much as China. However, I wanted to point out that if the purpose of the US subsidies is to promote the use of solar panels by lowering the price, how does it make sense to punish other countries from also subsidizing, further reducing the price?