Majority of EU States Oppose Chinese Solar Duties
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Germany and the United Kingdom are among at least 14 European Union members who are opposed to punitive tariffs on Chinese solar panel imports, undermining aggressive attempts by Brussels to pressure Beijing over alleged unfair trade practices.
The European Commission, the EU’s executive arm, has accused Chinese firms of selling solar panels below cost in Europe – a practice known as “dumping” – and plans to introduce provisional punitive duties, making it harder for China to advance its market share.
Germany and the United Kingdom are among at least 14 European Union members who are opposed to punitive tariffs on Chinese solar panel imports, undermining aggressive attempts by Brussels to pressure Beijing over alleged unfair trade practices.
The European Commission, the EU’s executive arm, has accused Chinese firms of selling solar panels below cost in Europe – a practice known as “dumping” – and plans to introduce provisional punitive duties, making it harder for China to advance its market share.
The duties, set at 47 percent, are due to come into force from June 6 for a trial period but could be withdrawn if both sides can reach a negotiated settlement.
Related: EU to Propose Punitive Duties on Chinese Solar Panels
Under EU rules, the Commission has the authority to determine whether those provisional duties are enacted. But opposition from member states would weaken the EU Trade Commissioner Karel De Gucht’s hand as the investigation moves towards a conclusion in December, when they can permanently block the levy.
Member states had until Friday to respond to the Commissioner’s proposal. According to EU diplomats and officials, at least 14 of the bloc’s 27 governments have rejected the duties, with some putting the number as high as 17.
Fearful of losing business in China, Germany, Britain and the Netherlands are among those who oppose the measures, diplomats told Reuters during a survey of countries’ positions.
France and Italy are meanwhile leading a small group of countries who say De Gucht is right to go ahead with sanctions.
The anti-dumping case, the biggest ever undertaken by the Commission and affects 21 billion euros ($27 billion) worth of Chinese-made solar panels sold in the EU, has emerged as a test of whether the EU can maintain a unified trade policy orchestrated by Brussels, or whether national governments would ultimately fracture under intense commercial lobbying by Beijing.
Chinese companies have captured over 80 percent of the European solar panel market, from almost zero a few years ago. Import duties would thus deliver a sharp blow to Chinese producers already struggling with overcapacity and import tariffs duties imposed in another major market, the United States.
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De Gucht met China’s deputy commerce minister Zhong Shan for informal talks in Brussels on Monday, a day after Chinese Premier Li Keqiang and German Chancellor Angela Merkel, meeting in Berlin, called for an end to the dispute, as well as another conflict over Chinese telecoms companies accused of dumping in Europe.
Rather than punitive measures, Merkel is calling for a negotiated solution, wary of the potential impact on German exporters if China were to take retaliatory steps. “Germany will use its influence to ensure that very intensive talks are held, that it doesn’t come to permanent import tariffs,” she said.
