US, China may be close to a trade deal

The Solar Energy Industries Association is attempting an overarching agreement to end all current trade disputes related to the solar panel industry. The news comes on the day that the U.S. International Trade Commission has taken a step towards expanding punitive duties on Chinese solar panel makers.

Now a major U.S. trade group called the Solar Energy Industries Association thinks there may be a solution at hand, involving high level leaders in the industry and both governments.

"A negotiated solution between the U.S. and China, what we're calling for, would be the first time anything like this has been achieved. And so if you think if, between the U.S. and China, that relationship has had difficulties, what we're asking for is something that has never been achieved before. And so it is a very high aspirational goal, but we do believe that that goal is achievable and that we are making important progress," said John Smirnow, Solar Energy Industries Association.

Today, the International Trade Commission took a preliminary decision to expand duties on Chinese solar panel makers when they source solar cells from a third company, in this case Taiwan, in order to circumvent tariffs imposed from a previous ruling. Both complaints were led by a German company with U.S. manufacturing facilities, Solar World.

The proposed deal would end all existing tariff orders and all existing trade cases, including the Solar World case. It would also end Chinese tariffs on U.S. poly silicon suppliers, the raw material for solar panels. Chinese companies would establish a settlement fund for SolarWorld.

"I think all the key parties are starting to align, recognize the need for settlement and we hope that within the next few weeks, we can at least have, at least help broker an initial negotiated dialogue, or even a conversation where we get all the key parties in the room," said John Smirnow.

The Solar Energy Industries Association represents most of the largest U.S. solar companies and believes this pragmatic option could also offer a template for future trade relations with China.

It may also be an attractive option given that high profile trade disputes are often counterproductive to relations between China and the U.S. as a whole and often provide few real-world benefits, even to those who win their cases.