Europe Keeps Chinese Solar In the Dark

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has decided to keep anti-dumping duties imposed on Chinese solar power companies in 2013.

The EC's decision was backed by the Luxembourg-based General Court of the European Union (EU), which rejected all calls to end the duties. In 2013, a nine month investigation by the EC concluded that Chinese solar manufacturers benefitted greatly from government subsidies. The European market was flooded with Chinese solar panels and essential components at below market cost which in turn had a damaging impact on European solar companies. As a result anti-dumping of up to 48% were imposed on Chinese solar companies. For additional information, see December 2, 2013, article--Europe Slaps Import Duties on Chinese Solar Glass.

In 2013, the investigation found that China's share in the European solar market rocketed between 2009 and 2012. Dumped import volumes of the product concerned into the Union increased considerably by 596%, leading to China's share of the market jumping from just 6.1% in 2009 to 28.7% in 2012. Since 2014, 26 companies affected by those duties have applied to the General Court to have the anti-dumping and anti-subsidy measures annulled. However, in its ruling the court stated: "The court rejects all the applications and confirms all the definitive duties set by the Council."

The Commission had proposed to extend the current tariffs for two additional years once the current scheme expires in March 2017, but last week proposed reducing this period to 18 months.

Europe's solar industry, which originally called for the anti-dumping duties to protect its industry, are now divided on their continued use. SolarPower Europe, formerly the European Photovoltaic Industry Association (EPIA), is calling for the duties to be stopped claiming they represent a barrier to trade.

James Watson, SolarPower Europe Chief Executive Officer, said: "Today the European Commission started the first action in the process of phasing out the deeply unpopular trade measures on solar panels and cells. The Interim Review appears to suggest that the duties and the minimum import price (MIP) will be replaced with one single variable MIP that will be regularly adjusted to reflect market developments. It is very important that any new mechanism does reflect the market today, as the former MIP became obsolete based on its failure to reflect the market to even the tiniest degree."

However, another industry group, EU ProSun has welcomed the extension of the duties, and questioned the reduction from two years to 18 months. Speaking to Reuters, EU ProSun president Milan Nitzschke said: "It seems a little bit to be a signal so as to make closer ties with China".

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