EU Countries Are Opposing the Duty Extension on Chinese Solar Panels

EU Countries Are Opposing the Duty Extension on Chinese Solar Panels
A vast majority of the EU nations last week started opposing the European Commission plan for extending these anti-dumping duties on the Chinese solar panels for at least 2 years. As per the EU diplomats, the EU countries are now pressurizing the EU executives in reviewing the proposal. But these duties will not actually end as the 18 countries that have voted against them do not actually represent most of the EU’s population, falling short of the blocking qualified majority.
This case will now go to the appeal committee, which has some representatives from the European Union’s 28 member states. The majority view may also be adding pressure to the European Commission for reviewing the proposal. These EU governments did back the 2 year extension of tariffs that was designed to counter-trade the subsidies. These kinds of tariffs are actually capped around 11.5 percent. European Union and China came close to the trade war in the year 2013 over these EU allegations of solar panel dumping. However, this got averted by the agreement for allowing the limited amount of tariff-free panels at the minimum of 0.55 Euros/Watt.The commission went on to review the agreement and the import duties as high as 64.9% for those people outside this agreement all of which ended during December 2015. The EU executive stated in one paper sent to the European Union members that ending the measures will more likely lead to the continuation of the Chinese subsidies for the solar sector and significant increase in the dumped imports of these solar cells as well as modules.

It also stated that the measures will only have limited effect on the demand and the comparison between the 50K people working in the importing and the setting up 5K to 10K in manufacturing is not actually appropriate. The job gains in the former can actually be overweighed by some losses in latter. One document stated that the minimum panel price will be reducing to around 0.46 per watt.

The EU ProSun, a group of manufacturers that include Germany’s SolarWorld, had actually welcomed this commission’s findings and stated that it was pretty convinced that the extension of these anti-dumping measures will be settled in a few weeks. However, SolarPower Europe that represents these in the solar panel industry opposed to duties and stated that it was actually pretty pleased with the majority view and it hoped the commission will review the proposal. There have been many sources that are stating that this case will be settled by March 3, 2017. However, time alone will tell how this case will be reviewed and what verdict will be out to the people. People are eagerly waiting for a positive verdict on this case.

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