ITIF Report Says Trade Practices Limiting Transition to 'Green' Technologies
Unfair or illegal trade practices hurt the U.S. clean energy economy and significantly slow the transition to a global low-carbon economy, said a report by the Information Technology and Innovation Foundation. The report, on Green Mercantilism: Threat to the Clean Energy Economy, catalogs how many nations, including China, are manipulating the global trading system to gain unfair economic advantage in the competition for what could be a $2.2 trillion market for clean energy, ITIF said. It said countries use an array of mercantilist practices to boost exports and limit imports, including IP theft, forced technology transfer, export subsidies, discriminatory standards, tariffs and preferential treatment of domestic firms. The report said "green mercantilism" impedes progress toward energy technology breakthroughs because innovators are undermined by foreign competitors propped up by government policy and face mounting disincentives to invest in R&D. Examples cited include:
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- South Korea requires all solar panels to be certified before being sold, yet its standard effectively excludes thin-film solar PV designs largely exported by the U.S, shutting those products out of the market.
- China has made forced technology transfer from foreign firms a central policy in its "New Energy Vehicles" strategy to create a domestic electric vehicle industry.
- Ukraine, Italy, India and Brazil use domestic content requirements to provide preferential treatment to domestic firms and discriminate against foreign competitors.