Trade remedies in the renewable energy sector: Normal value and double remedies
08/05/2015 12:00
Christine Barthelemy, Daniel Peat
Abstract
Subsidies within the renewable energy sector are rife. Once stymied by the subsidisation of fossil fuel production, active government support is now advocated as a part of ‘green industrial policy’ aimed at stimulating growth within the sector. This predominantly economically motivated shift provides the positive externality of climate change mitigation, yet leaves certain government support measures vulnerable to countermeasures under WTO law in the form of unilateral countervailing duties. Further, as four investigations in the past three years demonstrate, the same products are often subject to simultaneous anti-dumping duties. This article aims to investigate the interaction between these trade remedies in the RE sector. It examines what lessons can be taken from the reports of the Panel and Appellate Body (AB) in US – AD/CVD and report of the Panel in US – CV/AD Measures, and moves on to an in-depth examination of the 2012 US and 2013 EU investigations into the dumping of photovoltaic products from China. It concludes by reviewing outstanding issues for trade remedies in the RE sector; namely, the appropriate choice of surrogate third country and sampling technique, the accurate calculation of dumping and subsidy effects, and the burden of proof for double remedies.
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