EU’s Anti-Dumping Measures against China’s Solar Panels

Written by | Thursday, December 5th, 2013

The European Union has recently begun imposing anti-dumping measures on selected Chinese solar panels whose producers refused to negotiate a “friendly” settlement. The measures are believed to remain for two year and are set to enter into force on Friday, December 6. The European Commission said that the measures would apply to the solar panels of those Chinese producers who refused to participate in a compromise arrangement reached between the two sides designed to avoid an all-out EU-Chinese “trade war”.
According to the official statement of the Commission, the final anti-dumping as well as anti-subsidy duty rates will be applicable only to those imports from China which do not adhere to the conditions outlined in the undertaking. Both China and the Union reached an amicable agreement in July this year, where China’s exporters agreed to a minimum price to ensure there is a floor to the market up to a certain level of imports. Beyond this threshold level, anti-dumping tariffs will enter into force.
China’s cheap solar panels have flooded the European market in recent years, which triggered off complaints from the European producers. This in turn resulted in the EU’s largest-ever trade probe covering a market worth approximately 21 billion euros. The value has however declined due to plummeting demand and overcapacity. During the investigation, the EU Commission found out that Chinese firms were marketing solar panels in Europe at prices far beyond the market prices. Moreover, they were reportedly taking problematic subsidies, which did harm to EU solar panels manufacturers.
The Commission said that the agreement with China should now stop the “downward spiral of prices on solar panels”. The stable and fair market prices are very important for the current production but also for any future investments in the sector. Therefore, the EU is committed to protect its billion-euro market even at the cost of trade disputes with its second biggest trade partner.

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