Brussels and Beijing have finally agreed to a minimum price for solar panel imports.
After the European Commission accused China of selling its solar panels in Europe at below cost, the EU executive imposed an almost 50% provisional tariff on Chinese solar imports.
The EU trade commissioner said on Monday that both sides have reached “an amicable solution”.
‘The Chinese suppliers have agreed to voluntary price undertaking where they commit to stop dumping and keep prices above a certain floor. In return, those companies who participate in this engagement do not have to pay the anti-dumping duties. This undertaking will apply only for an annual volume that covers part of the overall European market’, said EU Commissioner for Trade Karel de Gucht.
Sparking fears of a trade war, the anti-dumping case was the biggest ever undertaken by Europe.
Under the new deal, the provisional tariff will be called off for Chinese companies that decide to participate.
‘I believe that this solution will remove the injury for European industry. It is equivalent to imposing provisional duties for all Chinese exporters. The effect will be that the European industry will have the space to regain its previously-held market share. We restore stability with a sustainable price level in the European market’, said EU Commissioner for Trade Karel de Gucht.
China is the world’s largest producer of solar panels with exports to Europe worth 21 billion euros last year.