Intriguing Shift: Cambodian Solar Companies Withdraw from US Tariff Investigation

Two Cambodian solar energy companies, Solar Long and Hounen Solar, have withdrawn from cooperating in the U.S. anti-dumping investigation, as stated in documents submitted to the Department of Commerce on October 15. Represented by U.S. attorney Craig Lewis from Hogan Lovells, the companies decided to exit the investigation due to a lack of resources to allocate to the process. Lewis did not provide further comments on the matter.

The investigation was initiated in response to U.S. manufacturers' request to the Biden administration in April to impose tariffs on solar panel imports from Vietnam, Cambodia, Malaysia, and Thailand. These countries are major suppliers of solar panels to the U.S. market. In June, Solar Long and Hounen Solar were designated as mandatory participants by trade officials due to their significant export volumes to the U.S. This designation meant the companies could potentially receive individual tariff rates different from the general rate applied to their country.

According to a report from the U.S. Census Bureau, U.S. imports of solar panels from Cambodia have dropped by approximately 37% this year. However, it remains unclear whether Solar Long and Hounen Solar will continue to participate in the concurrently running anti-subsidy investigation.

The Department of Commerce has not yet responded to the withdrawal of the Cambodian companies. Meanwhile, Tim Brightbill, an attorney for the American Solar Manufacturing Trade Committee, indicated that the withdrawal of the two Cambodian participants from the anti-dumping investigation could result in punitive measures by the Department of Commerce due to non-cooperation.

The trade case has been a contentious issue within the U.S. solar energy market. While domestic manufacturers advocate for protective tariffs, the outcome of the investigation and its potential impacts on Cambodian firms and the broader U.S. solar energy industry remain to be seen.