The European Union and China have settled their dispute over the flooding of China-made solar panels in the European markets.
Under the price undertaking settlement, the Asian country will supply up to 7GW of solar products every year at a price not less than 56 cents per watt.
In case Chinese solar panel manufacturers sell their products above the price limit, they will be penalized with anti-dumping duties that will be 47% effective from 6 August.
EU Trade Commissioner Karel De Gucht said that the commission had to balance between controlling Chinese dumps and meeting demand for panels in Europe.
"Solar panel deployment is important for Europe’s ambition to reduce CO2 emissions. Exactly because of the ambitious climate policy in Europe over the previous years, European demand was world leading and exceeded the capacity of European supply.
"In short: Europe will continue to rely on solar panel imports to an important extent also in the future, even when the injurious effects of the dumping will be eliminated and the EU industry will have fully recovered." Gucht added.
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By GlobalDataThe dispute began after the trade commissioner suggested introduction of punitive charges on China-made solar products, claiming that the country is using European market as a dumping ground.
The Chinese Chamber of Commerce was quoted by The Wall Street Journal, "The price undertaking agreement reflects the wishes of the majority of the Chinese industry and the bilateral consultations of China’s solar-products industry to continue exports to Europe and to maintain reasonable market share."
