China and
the European Union have reportedly reached a consensus on minimum prices and an
annual quota for Chinese solar panel imports to the EU, which may help China
avoid the hefty 47% anti-dumping duty set to take effect in August. The EU may
also be able thereby to avoid a resulting trade war, according to China's
Global Times and our Chinese-language sister paper Want Daily.
The EU
imposed a 11.8% interim anti-dumping duty on Chinese solar panels from June 6.
The duty will be raised to 47% if the two sides can not resolve the trade dispute
before Aug. 6. China has been negotiating with the EU on the matter while also
launching a retaliatory anti-dumping probe on wine imports from the EU region.
Representatives
led by EU Commissioner for Trade Karel De Gucht and China's Minister of Commerce
Gao Hucheng have been in talks and are reportedly close to agree a minimum
price of €0.55 (US$0.73) per watt of capacity for Chinese solar panels. The
panels were formerly sold in the EU for €0.40 (US$0.53) per watt, far lower
than the €0.58 (US$0.77) per watt that is the lowest price that European
manufacturers can offer.
The China
Chamber of Commerce for Import and Export of Machinery and Electronic Products
allegedly sent a letter to 66 Chinese solar panel makers and said the EU was
aiming for a minimum price of €0.57 (US$0.76). The EU also reportedly hopes to
set the price higher than the productions costs in Asian countries.
A quota for
Chinese solar panel imports is also set to be discussed by the Chinese and EU
representatives. "Negotiations are ongoing at the highest level toward an
amicable solution," said EU trade spokesman John Clancy, according to the
Global Times.
China sold
over €21 billion (US$27 billion) worth of solar panels in the EU in 2011. The
Alliance for Affordable Solar Energy said the anti-dumping duty has caused the
prices of solar panels in Europe to rise and reduced demands. The service
sector was also influenced significantly and led to increasing unemployment, it
said.
References:
Gao Hucheng 高虎城
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