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The European Commission And China Reach Agreement

As many of you will be aware there has been a dispute between China and the European Union countries over the import of solar panels produced by Chinese solar panel manufacturers running for many months. A few weeks ago, this led to the European Commission imposing a temporary import tariff on these manufacturers pending further negotiations taking place between the parties involved.

An agreement has been reached between China and the European Commission over solar panels
(image credit: stantontcady)

If no agreement could be reached the European Commission were going to impose import tariffs of up to 47.6% on these manufacturers that could last for several years. However, you may be interested to read that an amicable solution has been made between Beijing and Europe.

Apparently, a minimum pricing structure has been agreed. Karel De Gucht, the European Commissioner for trade, made reference to the fact that he was satisfied with solar panel exporters in China offering a price undertaking. He felt that this would result in sustainable prices in a stable new market.

This price undertaking permits Chinese solar panel manufacturers to export up to 7 gigawatts per annum to countries within the European Union without having to pay any duties as long as the price is at least 56 cents per watt. Should solar products be sold from the 6th August 2013 below this price or they exceed the quota then an anti dumping tariff averaging 47% would be imposed. It should be noted that the 56 cents per watt is a lot lower than the 80 cents per watt or more that European solar panel manufacturers had felt was acceptable.

So far, around 90 solar manufacturers in China have signed up to the agreement that should last until 31st December 2015. Any that do not will pay the duties.

Obviously, this is a major decision that could be challenged but we would very much welcome the thoughts of our readers on this matter.

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