Will the EU be for or against anti-dumping duties on solar panel imports from China? The definitive answer is expected tomorrow, when the EU Commissioner for Trade, Karel De Gucht, will discuss the proposal to impose tariffs
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The EU will be for or against the anti-dumping duties on imports of solar panels from China? The definitive answer is expected tomorrow, when the EU Trade Commissioner, Karel De Gucht, will discuss the proposal to impose tariffs. According to various rumors, De Gucht would be favorable to the adoption of this solution.
Europe will have until 5 June next, less than a month therefore, after nine months of investigations aimed at establishing whether the introduction of Chinese photovoltaic panels in the European market will be subject to customs duties.
But what exactly is dumping? As explained by EU ProSun, this practice occurs when a foreign company sells one or more products within the territory of the Union at a lower price than the one normally adopted, i.e. at the internal prices of the product or at the cost of production in the own internal market. So how do you go about tackling these illegal commercial practices? The European authorities may decide to impose duties, paid to the EU by the importer, collected by the national customs authorities of the countries concerned. And that's what could happen from June 6 onwards.
The one that sees Europe and China as opposed - but also the US and China - it is a battle that has been going on for a year and which has led to decisive measures being taken overseas, following a complaint against China made by various companies and other US operators for unfair competition.
Even the Old Continent, since September 2012, has been called upon to respond harshly against China by European panel manufacturers. According to a report released by Reuters, the duties could be around 30% and would be imposed for up to five years. But in the Wall Street Journal there is even talk of the 46%.
EU producers complain that Chinese companies have attracted over 80 percent of the European market from scratch: "Chinese photovoltaic imports quadrupled between 2009 and 2011 as well as all global demand," he reports Reuters. And China alone in 2011 exported more than 21 billion euros of panels to the European Union. SolarWorld, one of the largest groups to operate in Germany, has blamed China in part for its problems, which include 900 million euros in debt.
However, it is not certain that the duty rate is thereis the only viable solution. Indeed, the European Commission could leave the door open for negotiations with the Beijing government before December.
Francesca Mancuso
READ also:
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- Fifth energy bill: the EU fears Chinese competition. In view of duties for photovoltaics?
- Photovoltaics: the US introduces a new tariff on Chinese solar panels
Image Credits: Bloomberg
