EU to impose heavy tax duties on Chinese solar panels import

The European Union (EU) is outlining plans to cut down solar panels import from China by imposing heavy duties on the products.

The move is said to be on the back of increased usage of Chinese solar panels in Europe, which is reducing the sales of panels from European producers such as SolarWorld.

EU trade commissioner Karel De Gucht is expected to advise his EU counterparts to increase import duties on China-made solar panels as a part of their efforts to reduce its standing in the European market.

The solar panel producers in EU have claimed that the China has seized 80% of the market against nil a few years ago, reported Reuters.

Further, the companies have alleged that the China has resorted to credit subsidising to boost the production by 20 times its market capacity.

Following the protests from the domestic producers, the commission launched an enquiry in September 2012.

De Gucht is currently working towards discussing the regulatory measures with the countries under the Union.

EU, meanwhile, has legal obligations to impose the duties by 5 June 2013.

The news agency quoted a person familiar with the developments as saying that Germany would back the commissioner’s proposal.

"Germany does not usually do so in trade defense measures, but this is an important industry under attack," added the source.
European companies that import panels from China, however, justify the lower prices stating that the producers have the scale to do so, according to The Wall Street Journal.

Belgian importer Cleantec Trade chief executive Wouter Vermeersch told The Wall Street Journal: "If prices are artificially increased by punitive tariffs, the European solar market would simply come to a standstill with disastrous effects on green jobs."