The European Union (EU) and China have come up with an amicable solution to the issue of Chinese solar manufacturers ‘dumping’ (or selling at unrealistically low prices) solar panels and their components on EU soil. With anti-dumping tariffs imposed in June and set to drastically increase on Aug 6th, the solution comes just in the nick of time.
The EU and China have agreed on a minimum price set for Chinese solar importers to sell their solar panels and components at within the EU and possibly set within a maximum quantity range as well. The price is said to be set within reach of market value however, it is rumoured to be around 56 Euro cents per watt for annual imports from China for as much as 7GW’s each year. Exact details are yet to be confirmed as the accord has not yet been formally approved by the full European Commission.
“After weeks of intensive talks, I am satisfied with the offer of a price undertaking submitted by China’s solar-panel exporters,” European Trade Commissioner Karel De Gucht said. “We are confident that this price undertaking will stabilize the European solar-panel market and will remove the injury that the dumping practices have caused to the European industry.”
There is already outcry from the EU’s ProSun group which represents about 40 European solar panel manufacturers. They have called the deal unacceptable and plan to file a lawsuit against it. They say the minimum price is still a ‘dumping’ price and the quantity limit is around 70% of the expected demand. The deal basically allows Chinese importers to dump panels legally.
“This is essentially a guarantee of sales at that level and more for China and an authorization to sell at dumped prices,” Milan Nitzschke, president of EU ProSun, said in an e- mailed statement. “That is a clear violation of EU trade law.”
Any Chinese solar importer not accepting the minimum price set or exceeding the annual 7GW limit will be subject to the EU’s anti-dumping tariffs. Mr Nitzschke has said that once it became clear that some EU Governments were not supporting the investigation or the tariffs, the commission rushed negotiations and gave in to Chinese demands. He believes the minimum price set needs to be much closer or over the 70 Euro cents per watt mark. The commission has previously said that a price of €1.12 per watt would be an approximate price of what would offset the damage previously inflicted on European manufacturers.
In addition, many are questioning the investigation into the dumping of solar panels. The investigation was carried out without the full support of the EU nations and does not seem to have reached an agreement that keeps most parties happy.
With trade between Europe and China being one of the largest, a trade war between them could become very big and nasty. This will be playing in the minds of many as the deal goes before the EU member countries and then the 28 EU commissioners for approval.