Why did the EU impose anti-dumping duties on Chinese solar panels?

On 2 December 2013, the Council imposed anti-dumping duties in respect of imports of solar panels and key components originating in and consigned from China.1 An investigation carried out by the Commission in 2012 and 2013 had revealed that Chinese solar panels were being sold in Europe at well below their normal market value.

Are Chinese solar panels being dumped in the EU?

The investigation was initiated on 6 September 2012 following a complaint lodged by EU ProSun, an industry association, which claims solar panels from China are being dumped in the EU at prices below market value and causing material injury to the EU photovoltaic industry (MEMO/12/647).

Does the EU impose a dumping duty on solar panels?

the imposition of measures is not against the Union interest. On the basis of these findings, it has been decided to impose an anti-dumping duty in a two-staged process: for two months, a duty of 11.8% will have to be paid, whereas from 6 August, duties ranging from 37.3% to 67.9% (averaging 47.6%) will be levied on solar panels from China.

Why did the escalation of solar panel antidumping lead to a trade war?

In the lead up to the Paris Conference the sharp reduction in the price of solar panels installed in Europe induced by the Chinese imports was seen by many as positive for EU’s climate policy goals. Thus, the escalation of the solar panel antidumping case brought the EU and China to the brink of a trade war.

How much does the EU import solar panels from China?

Bilateral trade in goods between the EU and China already well exceeds €1 billion per day. In 2012, the EU imported solar panels from China worth about €11.5 billion. Regulation to register imports of solar panels from China was published on 5 March 2013 (Publication in the EU’s Official Journal).

How did the European Commission deal with China's solar industry?

This led the European Commission to accept to settle the dispute by negotiating a minimum import price with the Chinese solar industry, while keeping import duties set at an average of 47,7 per cent as a back-up option.