THAILAND plans to protest against a United States investigation that could result in tariffs on solar panels imported from four Southeast Asian nations including Malaysia.
This follows a recent announcement by the US Commerce Department that it planned to investigate solar cells and modules produced in Cambodia, Malaysia, Thailand and Vietnam that were exported to the US.
It will seek to verify if the countries are using parts and components from China and if they are circumventing anti-dumping and duties on solar cells and modules from the Asian giant.
The Bangkok Post reports that the inquiry was initiated because of American solar company Auxin Solar Inc's request to the department.
Thailand's Foreign Trade Department director-general Pitak Udomwichaiwat said they have submitted a protest letter to Marisa Lago, the US under-secretary of commerce for international trade.
He said Commerce Minister Jurin Laksanawisit had also sent a protest letter to US Commerce Secretary Gina Raimondo on the matter.
As part of the inquiries, the US department plans to issue questionnaires to solicit information from companies in Cambodia, Malaysia, Thailand and Vietnam.
It is seeking to determine whether the production processes used to produce solar cells and modules in each of these countries are "minor or insignificant".
It will also include questions regarding the origin of inputs used to produce solar cells and modules, the level of investment and research and development in each country, the nature of the production processes, and the extent of the production processes and facilities in each country.
Pitak said the Foreign Trade Department will soon call for a meeting with Thai solar cell exporters to prepare a defence against the allegations.
According to Commerce Ministry's data, Thailand's solar cell exports have expanded with key markets comprising the US, Vietnam, Hong Kong, Japan and China.
In 2021, Thailand shipped US$1.07 billion worth of solar cells to the US, making up 49.1 per cent of the country's total solar cell exports.
Meanwhile in another development, Thailand's Agriculture and Cooperatives Ministry said it plans to install solar panels in at least one million farms across the country.
It said this was to help reduce electricity bills for farmers by up to 30 per cent in the future.
Deputy Agriculture and Cooperatives Minister Praphat Phothasuthon said Thailand was also facing an energy crisis along with many other countries as fuel prices rise.
A Post report said that the high prices of fuel imports have affected the cost of agricultural production, pushing the ministry to look into ways of reducing energy use in the sector.
The ministry also plans to use money raised from cryptocurrency to buy good quality solar panels and distribute them to farmers.
Praphat said the generated energy will be used to power farm machinery such as electric tractors, milling machines and crop-spraying drones.
It is expected to help reduce farm electricity bills by about 20 to 30 per cent each month for 15 to 20 years.
A million farms generating solar power will also help reduce the country's greenhouse emissions, he said.
He added that the pilot project could later be expanded nationwide to all homes and businesses.