Trade War Averted – Europe and China Settle Solar Dispute
The ongoing saga between the European Union and China over the alleged dumping of solar panels has apparently been resolved. Over the weekend, The EU and China agreed to a settlement which sets a higher minimum price for Chinese exports of solar panels to Europe. This means that Chinese exporters must respect minimum import prices. Prices for such panels are not fixed by this settlement, but rather, prevents the prices from falling below a certain floor price.
“We have found an amicable solution that will result in a new equilibrium on the European solar panel market at a sustainable price level,” Karel De Gucht, the European trade commissioner said in a statement. Full details of the settlement have not been released as the arrangement must be formally approved by the European Commission. Sources close to negotiations have indicated that the minimum price would be 0.56 euro per watt and would apply to the first seven gigawatts of solar panels imported.
Had a settlement not been reached, punitive tariffs imposed by the EU in June of 11.8% would rise to 47.6% on August 6th. Some Chinese companies faced tariffs of 67.9%.
Walter Wang is Managing Editor of CleanTechies. Follow Walter on Twitter: @energytaxprof
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