Tariffs on Chinese Solar Panels May Hurt Canadian Renewables Industry
theglobeandmail.com
Mar. 8, 2015
Mar. 8, 2015
Coded Expectation
GE3.05- determine the effect on international business of Canadian government policies (e.g. related to corporate taxation, tariffs, investment)
Summary
Canada will likely be placing higher tariffs on Chinese-made solar panels, which may lead to a slower shift to renewable energy in Canada. The higher tariffs were seen as a victory for Canadian solar panel manufacturers, but may end up harming Canadians more than helping. One distributor of solar panels, based in B.C., called the move, “the biggest step backwards ...in the past 10 years towards replacing fossil fuels with renewables.” He argues that even though Canadian manufacturers of solar panels will see an increase in jobs available, solar panel installers will see a decrease, due to the increased cost of buying panels. The tariffs have been recommended by the CBSA and only require approval by the Federal Government before they go into effect.
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Solar farms such as the one pictured above will be hurt by proposed new tariffs, as prices will skyrocket (6).
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Connection
In this example, the Canadian government has made an attempt to help Canadian solar panel manufacturers to succeed by placing tariffs on Chinese made solar panels. This will help Canadian solar panel manufacturers, but not without a cost to other related industries. The drawback to this plan is the higher cost of solar panels, meaning less people buy them (less renewable energy) and less people are needed to install them (less jobs). However, this doesn’t only affect Canadians. This also affects international business, as Canada will witness a decrease in Chinese products due to tariffs placed. This could lead to the Chinese government placing tariffs on certain Canadian goods, as a way to earn back the lost revenue. Overall, this simple government action affects a significant number of people within Canada and beyond.