Cambodian Solar Companies Withdraw from U.S. Trade Investigation

(Reuters) – Two Cambodian solar companies will no longer cooperate with a U.S. trade investigation into allegations they are flooding the market with panels priced below their cost of production. This information comes from documents filed with the Department of Commerce.

Affected Companies
Solar Long and Hounen Solar, in separate letters dated Oct. 15, stated through a U.S. attorney that they could no longer dedicate resources to the antidumping probe. Their attorney, Craig Lewis of Hogan Lovells, had no further comment on the matter.

Background of the Trade Case
The latest trade case affecting the U.S. solar market began in April when several domestic manufacturers requested President Joe Biden's administration to impose tariffs on products from Vietnam, Cambodia, Malaysia, and Thailand—the largest sources of solar panels in the United States.

Solar Long and Hounen Solar were selected by trade officials in June as mandatory respondents in the investigation due to their significant export volumes to the U.S. Mandatory respondents serve as proxies for other producers and can receive a separate tariff rate than what Commerce applies country-wide.

Impact on Solar Imports
According to U.S. Census Bureau data, solar imports from Cambodia have decreased by about 37% this year. It remains unclear if the companies will continue to participate in the related anti-subsidy investigation.

Commerce Department officials were not immediately available for comment.
An attorney for the companies involved in the trade case, which includes Hanwha's Qcells and First Solar (NASDAQ:FSLR), noted that the Commerce Department would likely penalize the Cambodian producers for their withdrawal from the probe.

Tim Brightbill, an attorney for the American Alliance for Solar Manufacturing Trade Committee, stated, "This is a significant development, because with both Cambodian respondents withdrawing from the antidumping investigation, they are failing to cooperate with the Commerce Department's investigation."