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EU imposes punitive tariffs on Chinese solar imports

China.org.cn, June 5, 2013

• The European Commission Tuesday decided to levy temporary punitive duties on Chinese imports of solar panels, cells and wafers, despite strong opposing voices from its second-largest trade partner.

  According to EU Trade Commissioner Karel De Gucht, EU will impose a tariff of 11.8 percent starting from June 6 to August 6 and further increase the tariff to 47.6 percent unless EU reaches a settlement with China within the next 60 days.

  The temporary tariffs will stay effective until the beginning of December, when the full investigation will be completed. The 27-nation bloc will then decide whether to impose permanent duties for up to five years.

  "The decision follows a thorough and serious investigation and extended contacts with market players. As the market for the imports of solar panels in the EU is very large, it is important for this duty not to disrupt it," he said.

  The EU reiterated that in order to "ensure the stability of supply of solar panels in the short term," the decision was made in two steps in order to cater to "exceptional circumstances." However, 18 EU member states voted against a provisional tariff just one week earlier.

  In a written statement, the European Commission reiterates its readiness to pursue discussions with Chinese exporters and with the Chinese Chamber of Commerce to find a solution so that provisional duties can be suspended.

  EU's decision to impose duties came after warnings from hundreds of European solar companies, 15 European photovoltaic (PV) associations, various trade associations, such as the Federation of German Industry (BDI) and the German Federation of Wholesale and Foreign Trade (BGA), the World Wide Fund For Nature (WWF) as well as many experts.

  All of them have spoken out publicly against duties, arguing that these will harm not only the European solar industry, but the European economy as a whole.

  China hoped to resolve its trade dispute with the European Union over the Chinese-made photovoltaic products through dialogue and consultation, Chinese Premier Li Keqiang said in a telephone conversation with European Commission President Jose Manuel Barroso Monday night.

  Li said the case, if not properly handled, would hurt both the Chinese and the EU interests.

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