Congress ’s Shade on Suspended Solar Duties Shines Light on Troublesome Trade Remedy Laws

Gabriella Beaumont-SmithOn May 3, the Senatepassed a  Housejointresolution to nullify President Biden ’s proclamation to freeze the collection of antidumping and countervailing duties (AD/​CVDs) oncertain imports of solar cells and panels.President Biden ’sproclamation, issued last June, usesSection 318 of the Tariff Act of 1930 to declare an emergency of insufficient “electricitygeneration capacity to meet expected customer demand. ” The president directed the Secretary of Commerce to freeze the collection of AD/​CVDs onsolar cells and panels imported from Cambodia, Malaysia, Thailand, and Vietnam, after the Commerce Department initiated an investigation based on U.S. solar manufacturers ’ claims that these imports are assembled with components produced by Chinese companies subject to AD/​CVDs. In other words, U.S. manufacturers alleged Chinese companies are circumventing AD/​CVDs by moving production to Cambodia, Malaysia, Thailand, and Vietnam.The resolution uses theCongressional Review Act (CRA) to overturn Commerce ’sfinal rule to freeze the collection of duties (as directed by the presidential proclamation). However, the president ’s use of Section 318 to declare an emergency of insufficient capacity to generate electricity is unjustified given productioncontinues to exceedconsumption. Thus, Congress is well within its right to overrule the president ’s action.It is also clear that the imposition of these duties is economically senseless, but th...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs