Brussels, 25/07/2013 (Agence Europe) - European solar panel manufacturers are threatening to go to court if the current compromise on a minimum price for Chinese products is accepted by the EU.
After six weeks of talks, European and Chinese negotiators have reportedly agreed on the key elements for an agreement on a minimum price and a quota - which would reportedly enable China to avoid the heavier antidumping duties on its exports of solar panels from August (in comparison with the lighter duties imposed in June).
After an anti-dumping investigation that was launched in September 2012, the EU has been imposing provisional duties on Chinese solar panels since 6 June. However, these provisional duties are only 11.8% as the European Commission decided on a two-stage response in order to encourage Beijing to negotiate. If an amicable solution is not found, the average tariff will be raised to 47.6% from 6 August, with the lowest duties (37.2%) for the Chinese businesses under investigation that cooperated, and the heavier duties (67.9%) for those which did not cooperate.
According to the German financial daily Handelsblatt, the compromise provides for an annual export quota of solar panels to the EU of 7 gigawatts, with a minimum price of €0.57 per watt. As well as the quota, Chinese exports would reportedly be subject to duties of 47.6%. China, which exported 12 gigawatts worth of solar panels to the EU in 2012, earlier proposed capping the volume of its exports at 10 gigawatts. It had also proposed setting a minimum price of €0.50 per watt, as compared to the current €0.37 - in other words, an increase of 35%, but below the Commission's expectations.
According to a Chinese source quoted by AFP, there were only a few details still to be settled at the time of the last meeting between European and Chinese experts in Brussels on Monday. The final compromise is due to be tied up by European Commissioner for Trade Karel De Gucht and Chinese Minister for Trade Gao Hucheng.
De Gucht's staff have not confirmed this leak, simply speaking of “discussions under way at the highest level ahead of an amicable solution”. On Wednesday, the Commission reportedly told member states that the negotiations with China were making good progress.
The association of European solar panel manufacturers, EU ProSun, is threatening to take the case to the European Court of Justice if the EU accepts the compromise reached by Brussels and Beijing. European manufacturers consider the compromise “absurd” because it provides for a minimum sales price in Europe that is still below the current price of €0.59 per watt which is considered as dumping. (EH/transl.fl)