The European Commission approved trade chief Karel De Gucht’s plan for curbs on Chinese solar panels, allowing import tariffs to be removed in three days in Europe’s largest dumping dispute.
The commission, the European Union’s executive arm, Friday endorsed a negotiated settlement with China that sets a minimum price and a volume limit on EU imports of Chinese solar panels until the end of 2015. Chinese manufacturers that take part will be spared EU duties meant to counter below-cost sales, a practice known as dumping.
Solar panels produced by Solarworld AG are seen in a field near the company’s plant in Freiberg, Germany. (Bloomberg)
“This is going to stabilize the market,” De Gucht, the 28-nation EU’s trade commissioner, said in a Bloomberg Television interview Friday in Brussels. “I hope that this deal is going to give the necessary oxygen to the European companies, and also companies from other countries, to invest again in research and development so that we can develop a new generation of solar panels.”
The goal is to limit Chinese competition against European manufacturers such as Solarworld AG without resorting to anti-dumping duties that some EU national governments, including in Berlin and London, oppose. The renewable-energy case covers EU imports of crystalline silicon photovoltaic modules or panels, and cells and wafers used in them ― shipments valued at 21 billion euros ($28 billion) in 2011.
With Chinese companies controlling 80 percent of the EU solar-panel market and German Chancellor Angela Merkel leading warnings about punitive levies to boost import prices, De Gucht announced a settlement with China on July 27 after weeks of what he called “intensive” talks. He didn’t disclose the minimum price and volume limit in the agreement, which then had to be approved by the full commission.
In early June, the commission introduced provisional anti-dumping duties as high as 67.9 percent on Chinese solar panels as part of a probe begun in September. The commission decided to apply an initial lower rate of 11.8 percent for two months to encourage the government in Beijing to negotiate a solution.
As of Aug. 6, without the accord, the provisional levies applied would have ranged from 37.3 percent to 67.9 percent, depending on the company. The import taxes target more than 100 Chinese companies including Yingli Energy (China) Co., Wuxi Suntech Power Co. and Changzhou Trina Solar Energy Co.
(Bloomberg)
