European Union Approves Deals that Ended Largest Trade Disputes on Solar Panels
The European Union recently approved a deal with China that will curb all imports of Chinese solar panels thus ending one of the European Union largest trade dispute. The European Union government signed the agreement together with the trade chief and china last July that set a minimum price and a volume limit on European imports of Chinese solar panels until 2015.
Participating Chinese firms are spared tariffs that was meant to counter any alleged below costs sales a practice that is known as dumping and subsidies, the deal is seen to seek the balance that is demanded by European producers for trade protection and opposition in china. Also some European governments and importers are to levy on renewable energy technology. Furthermore the two year duration of the new measures are less than half of the normal five year period that is imposed by the European Union anti dumping and anti subsidy protection,
Several European solar panel manufacturer are suffering from material injury which is a direct result of the dumping of Chinese exporters and the trade distorting government aid that was given, while trade protection needs to take account the cost of different economic operators as well.
Europe accounts for three quarters of the global solar panels market and around 20 firms are seeking protection from creditors and some have already shifted production to lower costing plants that are found in Asia.