EU Approves Chinese Solar Tariffs
The European Union Council has backed the European Commission's proposals to impose definitive anti-dumping and anti-subsidy measures on imports of solar panels from China. This brings a close to the biggest trade case the commission has had in relation to China so far. The agreement that was made with the backing of Chinese companies saw off a potential trade war between the regions.
Duties will apply for two years as of 6 December 2013. In parallel, the Commission confirmed its Decision accepting the undertaking with Chinese solar panel exporters applied since the beginning of August.
The imposition of definitive measures needs to be seen in the context of the amicable solution reached with China which resulted in the undertaking. This undertaking, applied as part of the anti-dumping proceedings, is now confirmed and has been extended to the anti-subsidy proceeding. Hence, the final anti-dumping and anti-subsidy duty rates will apply only to those exports from China which do not meet the conditions set out in the undertaking. Those Chinese exporters that participate in the undertaking are exempt from paying the anti-dumping and anti-subsidy duties.
The decisions came after a fifteen-month investigation for the anti-dumping case and thirteen month investigation for the anti-subsidy case, launched in September 2012 and November 2012 respectively. During these investigations the Commission found that Chinese companies were selling solar panels in Europe at far below their normal market prices and were receiving illegal subsidies, causing significant harm to EU solar panel producers.
Following complaints lodged by the industry and led by German based SolarWorld, the European Commission conducted two parallel investigations concerning imports of solar panels from China, an anti-dumping investigation and an anti-subsidy investigation.
On 5 June 2013, the Commission imposed provisional measures in the anti-dumping case. On 2 August 2013 the Commission accepted an undertaking offered by the majority of Chinese solar panel exporters.
The Commission reached its definitive conclusions on the solar panels anti-dumping and anti-subsidy investigations and, after consulting Member States, made a proposal to the Council to impose definitive anti-dumping and anti-subsidy measures for a period of two years.
In parallel, the decision accepting the undertaking has been confirmed and updated, among other things to include the anti-subsidy case in the undertaking and to extend it to some additional companies. The Commission took the final decision on the undertaking with a view to it entering into force on the same day as the anti-dumping and anti-subsidy measures, on 6 December.
The duties, combined with the undertaking, are expected to stop the downward spiral of prices on solar panels. Green sustainable development is only possible with sustainable industries. In this respect, stabilized prices are important not only for current production, but future investment decisions too.
The decision should contribute to creating a more level playing field for Europe's renewable energy industry. The industry is essential to the EU's renewable energy targets. Unfair trade in solar panels does not help the environment and is not compatible with a healthy global solar industry stated a Commission press release.
