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EU Decides Not To Impose Provisional Anti-Subsidy Duties On Chinese Solar Panel Makers

Only last week, the European Commission, after lengthy talks with their Chinese counterparts, decided not to impose import duties on solar panels produced by solar panel manufacturers in China much to the relief of the majority of those involved in the solar power industry. Instead a minimum pricing structure was agreed although an anti-dumping tariff could be imposed on those not complying with the terms and conditions of the agreement.

Back in November 2012, the executive arm of the European Union instigated an anti-subsidy enquiry into Chinese solar panels, wafers and cells and were given nine months to complete their enquiry and make a decision whether to introduce provisional duties on Chinese manufacturers in the solar industry.

The European Commission is to carry on with its enquiry into possible solar panel anti-subsidies by China
(image credit: stantontcady)

On the 7th August 2013, a statement was issued by the European Commission confirming that it has made the decision that they will not put in place provisional duties but is to carry on with its enquiry into anti-subsidies. However, it still has until 5th December 2013 to make a decision whether it should introduce specific anti-subsidy duties.

It is claimed by a number of solar panel manufacturers in Europe that their counterparts in China have benefitted from significantly large state subsidies enabling these companies to dump solar panels in Europe at below cost to the value of around £21 billion in 2011.

The European Commission has a difficult balancing act to perform as it will not wish to cause any further disquiet between Europe and China but, at the same time, needs to be seen to be taking a firm line to protect the interests of the member countries within the European Union. It is going to be an interesting four months leading up to a decision being made in December or sooner.

As always, we will continue to keep our readers up to date about any significant developments.

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