Brussels, 05/06/2013 (Agence Europe) - Beijing has responded to the European Commission's decision to impose provisional anti-dumping duties on Chinese solar panels by opening an investigation into EU wines.
The day after the Commission's announcement that it had decided to impose anti-dumping duties on Chinese exports of solar panels from 6 June - provisionally and progressively in order to leave time to negotiate - China quickly responded with a threat of trade retaliation.
On Wednesday 5 June, the Chinese ministry of trade announced the opening of an anti-dumping investigation into imports of European wine. “[We have] received an application from our domestic wine industry which accuses wines imported from Europe of entering China's market by use of unfair trade tactics such as dumping and subsidies. We have noted the quick rise in wine imports from the EU over recent years and we will handle the investigation in accordance with the law”, said the Chinese ministry of trade in a press release published on its website.
On Tuesday, the official press agency New China had warned that the “punitive” duties from the EU against Chinese solar panels were “not likely to arouse a friendly response from China”. “The Commission's decision risks derailing trade relations between China and the EU”, New China warned. “China vigorously opposes pressure exerted by Europe by means of its unfair taxes targeting Chinese photovoltaic products”, said the spokesperson for the Chinese Ministry of Trade, Shen Danyang. “China does not want to see relations between China and Europe deteriorate because of friction on the photovoltaic sector”, he stressed.
On Thursday, the EU is due to impose an increase in customs duties on solar panels manufactured in China, but this will be less than was initially envisaged. Indeed, the EU will impose duties from 6 June for six months on the imports of Chinese solar panels. This will be done in stages. From 6 June, a tariff of 11.8% will be imposed on all imports of these products. Two months later, on 6 August, the average tariff will be 47.6%. Overall, the duties will range from 37.2% to 67.9%. The Chinese companies that have cooperated will have their duties lowered, and those that have not cooperated will have higher duties imposed. The Commission thus wants to give a “phased response” to provide urgent protection for the European industry and to encourage Beijing to negotiate, European Commissioner for Trade Karel De Gucht explained on Tuesday.
Inappropriate and reprehensible. Reacting on Thursday to the Chinese response, France immediately criticised Beijing's threat of overtaxing European wine. “We take this very seriously. We are studying the scope of the measures, which are not precisely known”, stated the French Ministry of Trade, adding: “The way in which this is presented seems to us completely inappropriate and reprehensible - the fact that the file has not been dealt with for its own economy but because a decision was taken in another domain”. French President François Hollande called for a meeting of the 27 EU member states “to find solidarity on the standpoint” for the trade negotiations with China.
Hosting Spanish Prime Minister Mariano Rajoy in Brussels, President of the European Commission José Manuel Barroso said he was “completely in agreement to discuss the issue at the level of the 27”. However, he added: “What would not be wise would be to have a summit on a specific case”. Speaking through its minister for the economy, Philipp Rösler, Germany showed that it was cautious, calling again for a negotiated solution, and warning of the danger of a wider trade confrontation.
The EU provided two thirds of the 430 million litres of wine imported by China last year, according to statistics from Chinese customs. French exports alone stood at 170 million litres. China is the third biggest market for exports of French wines and spirits (9%). The annual valueof exports of wines and spirits from the EU to China exceeds €1 billion. (EH/transl.fl)