The European Union (EU) and China have resolved their solar panel antidumping dispute by setting up a minimum price for China’s imports.
The settlement comes after a nine month investigation, launched in September 2012, under which the European Commission (EC) found that Chinese firms were selling solar panels to Europe at far below their normal market value, causing significant harm to EU solar panel producers.
Chinese companies have been allowed to sell their solar panels in Europe at a fair value, which should be 88% higher than the price it is actually sold.
In June 2013, the EU accused China of dumping solar panels in Europe for selling them at lower cost to steal market share.
The settlement came seven weeks after EU had imposed provisional anti-dumping duties on Chinese solar panels, starting with 11.8% on 6 June, while the tariff was set to increase to 47.6% on average by 6 August 2013.
EU trade commissioner Karel De Gucht said that both parties have agreed a minimum price for the solar panels.
"We are confident that this price undertaking will stabilise the European solar panel market and will remove the injury that the dumping practices have caused to the european industry," De Gucht said.
"We have found an amicable solution that will result in a new equilibrium on the European solar panel market at a sustainable price level."
The EC said the settlement is intended to strike a balance between two elements, which includes removing the dumping found and supplying stable solar panels to the EU market.
Image: China is reported to have exported solar panels totalling €21bn in 2011 to Europe. Photo: courtesy of FreeDigitalPhotos.net.