Chinese producers agree to minimum price for exports.
The European Union and China yesterday settled their dispute over the export of underpriced Chinese solar panels.
The agreement came nearly eight weeks after the EU imposed punitive tariffs on solar panels and their components, solar cells and wafers. The levy was set at 11.8%, but it was due to quadruple on 6 August, to an average of 47.6%. Some Chinese companies faced tariffs of 67.9%.
The European Commission decided on a graduated approach in order to encourage Chinese producers to come to a settlement, and also in response to anxiety from EU member states about the effects of a substantial tariff.
The agreement sets a minimum price for Chinese exports of solar panels to the EU, and also a limit on the volume of exports.
Full details of the deal will be available only after it is approved by the 28 European commissioners. However, an official and industry insider said that the minimum price would be €0.56 per watt, and that total exports amounting to greater than 7 gigawatts a year would still be subject to tariffs. In 2012, EU demand for solar panels amounted to about 15 gigawatts. The EU accounts for about three-quarters of the global market.
Written by European Voice. To read the full article, click here.