European Union (EU) and China have signed an agreement that requires solar panel manufacturers of China to sell their products in the European countries above a minimum price.
In the first week of June, the EU imposed provisional anti-dumping duties on imports of solar panels, cells and wafers from China, after a nine-month investigation, which found that these firms were selling solar panels to Europe at much lower prices than normal market value, causing significant harm to EU solar panel producers.
The EU further said that duties will be imposed in two stages, starting with 11.8 per cent till August and followed by 47.6 per cent for another four months to alleviate the harm caused to the European industry.
The agreement is expected to stabilise the European solar panel market and remove the injury caused due to dumping practices.
Karel De Gucht, trade commissioner of the EU, said: “After weeks of intensive talks, I can announce today that I am satisfied with the offer of a price undertaking submitted by China’s solar panel exporters, as foreseen by the EU’s trade defence legislation. This is the amicable solution that both the EU and China were looking for.
“We are confident that this price undertaking will stabilise the European solar panel market and will remove the injury that the dumping practices have caused to the European industry. We have found an amicable solution that will result in a new equilibrium on the European solar panel market at a sustainable price level.
“Upon consultation of the advisory committee composed of member states, I intend to table this offer for approval by the European Commission.”