On August 20, 2012, China’s MOFCOM announced the final determination in its investigation of alleged trade barriers erected by state governments in the United States to protect the renewable energy sector. As reported in July, MOFCOM initiated the case in November 2011 following the commencement of a U.S. case against Chinese solar panels. MOFCOM issued its preliminary determination in May, finding countervailable subsidization of renewable energy products by the states of Washington, Massachusetts, Ohio, New Jersey, and California through tax incentives. The final determination reiterates this earlier ruling, finding that the same state tax incentives constitute prohibited subsidies that violate both Article 3 of the WTO Agreement on Subsidies and Countervailing Measures and Article III of the General Agreement on Tariffs and Trade of 1994. Although MOFCOM ruled that these state programs violate international trade agreements, MOFCOM did not issue any definitive countermeasures. MOFCOM’s announcement requests instead that U.S. authorities discontinue the noncompliant aspects of the state programs and accord fair treatment to imports of Chinese renewable energy products.
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Chinese government issues final determination against U.S. renewable energy products
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