The European Union defies China with tariffs on solar panels

Proposal was resistance from several countries, led by Germany

June 04,2013.

European Union (EU) imposed Tuesday "unanimously" tariffs on Chinese solar panels, despite resistance from several European countries, led by Germany, and threats of retaliation from Beijing.

"We have decided unanimously to impose a temporary tariff" on imports of solar panels, said EU Trade Commissioner Karel De Gucht, at a press conference.

The EU executive accuses China of flooding the European market with cheap solar panels, "which hurts European companies".

"It is clear that the dumping of these damaged solar panels solar panel industry in the European Union and threatens 25,000 jobs," he said.

In the first phase, until August 2013, tariffs will be 11.8%. From there - if Beijing fails to take action - be of 47.6%.

"The European Commission reiterated its readiness to continue negotiations with the Chinese exporters and the Chinese Chamber of Commerce to find a solution," the EU executive said in a statement.

"The ball is on the side of the Chinese," De Gucht estimated.

"It is clear that if China does not provide from here to August 6 solution, apply much higher rates," he added.

Several countries, led by Germany, the first European partner of China, is opposed to tax the Asian country and called for a negotiated solution.

China has already said that the tariff sanctions are not only a threat to jobs in China but affect the interests of European businesses, consumers and the industry.

In a context of degradation of trade relations between China and Western countries, Beijing confirmed last Friday that initiated an antidumping investigation on a chemical imported from the EU and the United States.

Research is on the import of tetrachlorethylene, a product used as a solvent in cleaning textiles, said the Chinese Ministry of Commerce.

China reported a few days ago the European Commission this procedure by dumping directed against industrial groups in the chemical industry, and Solvay.

The Chinese initiative aims to chlorine derivatives, including tetrachlorethylene, French newspaper Les Echos.

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