EU imposes anti-dumping levies on China - New York News

EU imposes anti-dumping levies on China

Posted: Updated:

By JUERGEN BAETZ 

BERLIN (AP) — The European Union announced Tuesday that it is to impose anti-dumping levies on imports of Chinese solar panels, in a move that could trigger a trade war between two of the world's largest economies.

EU Trade Commissioner Karel de Gucht said Tuesday the 27-nation bloc will impose a tariff of about 12 percent on the import of panels, cells and wafers immediately, increasing it to an average of 47 percent starting in August unless a settlement is reached with China.

China is the world's largest producer of solar panels and is accused by the EU of selling them below-cost to corner the market. Its exports of solar panels to Europe totaled 21 billion euros in 2011.

De Gucht said the price at which Chinese solar panels are sold in Europe should be 88 percent higher according to the Commission's calculations. Chinese solar panels' market share in the EU has risen to 80 percent over recent years.

The cheap Chinese products are flooding the market and threaten to bring down EU manufacturers, de Gucht warned.

"It has the potential to destroy an important industry in Europe if we don't act today," he added.

The Commission, the bloc's executive arm, hopes to reach a settlement with Beijing and has therefore taken a phased approach that leaves two months for intense negotiations before the special duties reach the punitive level of 47 percent.

"The ball is now in China's court," de Gucht said.

"This is a one-time offer to the Chinese side to negotiate."

The trade row between the EU and China is the world's biggest anti-dumping case by sales volume, according to EU officials.

The global solar panel market is suffering from overcapacity, which has led to stiff competition that has forced several European manufacturers out of business.

De Gucht added that to reach a settlement, Chinese manufacturers would have to agree to increase their prices and accept a lower market share quota.

"I would like to see an agreement. If we get it right it would be better for both sides," he stressed.

If a settlement can't be reached, the permanent anti-dumping tariffs would require approval by a majority of the EU's 27 member states six months from now.

But several EU nations, including heavyweight Germany, have spoken out against imposing special duties and urged the Commission to reach a settlement with China.

Germany has the bloc's biggest solar industry, but Berlin fears imposing special duties could provoke Chinese retaliation on imports of European goods which, in turn, would harm German exporters.

China rejects the EU's price-dumping allegations. Premier Li Keqiang warned last month imposing punitive tariffs would hurt European consumers and might encourage trade protectionism, stopping short of threatening retaliation.

But the problem with the solar industry is not new for Beijing. The U.S. last year imposed punitive tariffs on solar panel imports after finding that China's government was subsidizing companies that were flooding the U.S. market.

 

Copyright 2013 The Associated Press.

  • Local NewsLocal NewsMore>>

  • Subway bedbug infestations on the rise

    Subway bedbug infestations on the rise

    Monday, September 1 2014 5:39 PM EDT2014-09-01 21:39:53 GMT
    It appears the subway bedbug problem we've been reporting is getting worse. Commuters already have to contend with sweltering platforms, scurrying rats and packed train cars, and now there's another transit woe: fear of bedbugs.
    It appears the subway bedbug problem we've been reporting is getting worse. Commuters already have to contend with sweltering platforms, scurrying rats and packed train cars, and now there's another transit woe: fear of bedbugs.
  • West Indian Day Parade steps off amid shootings

    West Indian Day Parade steps off amid shootings

    Monday, September 1 2014 5:27 PM EDT2014-09-01 21:27:38 GMT
    The West Indian Day Parade is supposed to be a time of fun and excitement in celebration of Caribbean culture. However, several shootings near the parade has turned it into a day of tragedy for some.
    The West Indian Day Parade is supposed to be a time of fun and excitement in celebration of Caribbean culture. However, several shootings near the parade has turned it into a day of tragedy for some.
  • Revel Casino Hotel starts closing in Atlantic City

    Revel Casino Hotel starts closing in Atlantic City

    Monday, September 1 2014 5:16 PM EDT2014-09-01 21:16:28 GMT
    Photo by Arun Kristian DasPhoto by Arun Kristian Das
    The most spectacular and costly failure in Atlantic City's 36-year history of casino gambling begins to play out Monday when the $2.4 billion Revel Casino Hotel empties its hotel.
    Atlantic City's newest casino and its costliest failure has begun its two-day shutdown.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices