SEMI Weighs In On Remedies For Solar Trade Disputes

Posted by SI Staff on March 01, 2013 No Comments
Categories : New & Noteworthy

In a new white paper, industry organization SEMI calls for constructive action on ongoing solar trade disputes.

The report, titled ‘Global Trade War and Peace: Unified Approaches to a Global Solar Energy Solution,’ describes various recommendations for moving beyond trade litigation and encourages an accelerated path towards dispute resolution. The report is authored by SEMI and the SEMI PV Public Policy Subcommittee.

SEMI recommends the following approach:

– Support and promote existing efforts to unify national/regional renewable and solar trade associations, and strengthen the voice of the global industry. Industry leadership will be essential if the solar market is to advance beyond the current protectionist impasse.

– Encourage the governments of the U.S., China, Europe, India and elsewhere to initiate a dialogue that transcends short-term enforcement actions and supports clean technologies. SEMI says it can play a critical role in this advocacy effort, given its experience from the semiconductor disputes of the 1990s.

– SEMI will develop an outline proposal for creating an entity similar to the World Semiconductor Council (WSC), as well as a draft implementation plan.

‘The solar energy sector is a $100-billion-plus and growing global business characterized by fierce international competition,’ says William Morin, senior director of government affairs at Applied Materials and one of the white paper's lead authors. ‘So it was probably inevitable that trade conflicts would arise.

‘What should not be inevitable, however, is that these tensions continue to define the global solar landscape,’ he adds. ‘The current path ultimately means the industry, consumers and the environment all lose. With leadership and long-term vision, we can turn this around.’

According to the white paper, multiple avenues for amelioration can be examined. These approaches include the following:

– U.S.-Japan Semiconductor Trade Agreement: As a result of the semiconductor dispute, the creation of the World Semiconductor Council produced an elevated dialogue and a pathway forward for the semiconductor industry. Far beyond the scope of the initial U.S.-Japan agreement, this government-industry body was created to promote the semiconductor industry in a global way and to use trade as more than simply a tool for litigation.

– Information Technology Agreement (ITA): Initially crafted in 1996, the ITA is a broad sectorial agreement that has allowed an annual increase of more than 10% for all products it covers. There are currently 74 ITA participants, and this model is viewed as the standard bearer for plurilateral engagement.

The full report is available here.

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