Europe, China end solar-panels tiff

Will lead to new market equilibrium at sustainable prices.

The European Union and China reached an agreement to limit EU imports of solar panels from China in return for exempting the shipments from punitive tariffs.

The deal will set a minimum price for imports of solar panels from China. The EU import taxes hit over 100 Chinese companies.

European Trade Commissioner Karel De Gucht said they have found an amicable solution in the EU-China solar-panels case. He didn’t disclose China’s minimum-price offer, which must be accepted by the full European Commission, or indicate whether the accord includes a limit on the volume of imports from China.

The goal is to limit Chinese competition against European manufacturers without resorting to anti-dumping duties. The case covers EU imports of crystalline silicon photovoltaic modules or panels, and cells and wafers used in.

The accord will fix a minimum price of 56 euro cents a watt for annual imports from China of as much as 7 gigawatts. It will cover 90 Chinese exporters that have about 60% of the EU solar-panel market, said official sources.