Electrical Equipment / Components & Telecoms

The U.S. has agreed to remove safeguard tariffs on Canadian solar imports after Canada, the U.S. and Mexico reached an understanding on an existing trade agreement. The decision was made following negotiations at a Free Trade Commission meeting in Vancouver.

The decision to remove the safeguard duties was signed by U.S. Trade Representative Katherine Tai and Canada’s International Trade Minister Mary Ng. Both countries expressed their belief that this would help both sides jointly tackle climate change.

The tariffs were implemented during Donald Trump's presidency in 2018. The safeguard measure, which lasts for four years, includes tariff rate quota (TRQ) measures for some imported photovoltaic cells, increased safeguard duty on imported crystalline silicon photovoltaic cells exceeding the TRQ, and all other CSPV imports including modules. The tariff rate starts at 30% and gradually decreases each year until it drops to 15% in the final year.

Earlier this year, the Biden administration extended restrictions on CSPV cells and modules for another four years. The White House issued a statement explaining the need for safeguard tariffs on imported CSPV cells, whether or not partially or fully assembled into other products, saying doing so would prevent or remedy serious damage to the domestic industry. U.S. domestic industry is actively adjusting to import competition.

According to Canada, Canadian solar product exports to the U.S. have fallen by nearly 82 percent since the U.S. imposed safeguard duties on Canadian solar products.

Using the dispute settlement mechanism, Canada has challenged the U.S. to impose safeguard tariffs on its solar products. Earlier this year, Canada won the dispute by arguing that the U.S. safeguard tariffs violated the U.S.-Mexico-Canada Agreement (USMCA) between Canada, the U.S. and Mexico.

"Canada is one of our closest allies, and reaching this resolution with Canada will drive the use of Canadian products, greater efforts to develop solar energy in the U.S., and foster a more resilient pipeline of clean energy products without forced labor," said Katherine Tai. North American supply chain.”

Mary Ng said the agreement will bring stability and predictability to Canada's renewable energy sector and help boost North America's competitiveness.