The European Commission announced it has reached an “amicable solution” with China in their spat over the solar panels import pricing.
The decision follows weeks of negotiations conducted by the Directorate General for Trade with the Chinese Ministry of Commerce after the EU imposed provisional anti-dumping tariffs on solar panel imports from China last month. The duties were expected to be imposed in two steps – starting with 11.2% on June 6 and 47.6% on average on August 6.
European solar panel manufacturers accused Chinese firms of “dumping” around €21 billion (£18.13bn) worth of below-cost solar panels in Europe last year, putting them out of business following which the European Commission launched an investigation.
Chinese solar panels exporting companies offered terms of an alternative form of measure called “price undertaking”. A duty is replaced by a price undertaking based on a minimum import price and those exporting Chinese firms participating in the price undertaking will be subject to its terms, therefore, their exports will be exempted from the anti-dumping duties.
Karel De Gucht, EU Trade Commissioner said: “After weeks of intensive talks, I can announce today that I am satisfied with the offer of a price undertaking submitted by China’s solar panel exporters as foreseen by the EU’s trade defence legislation.
“We are confident that this price undertaking will stabilise the European solar panel market and will remove the injury that the dumping practices have caused to the European industry. We have found an amicable solution that will result in a new equilibrium on the European solar panel market at a sustainable price level.”
The Chinese Government recently announced plans to generate 35GW of solar power by the end of 2015.