The STA joined the UK Energy and Climate Change Minister, Greg Barker, along with representatives from the Department of Energy and Climate Change (DECC) and the Department for Business, Innovation and Skills (BIS) along with several solar businesses to explain to European Commission (EC) officials that duties would severely and adversely impact the UK solar industry.
The STA has welcomed the UK Government’s vote against anti-dumping duties in response to the EU ‘Consultation of Member States on the Commission’s proposals to impose provisional anti-dumping duties on solar products from China’. The STA has also written to EU Trade Commissioner Karel de Gucht urging the Commission not to impose duties. The letter has been signed by 15 trade associations across 12 European countries, revealing the scale of the opposition to duties.
“Yesterday we showed the Commission the damage their proposals are already causing for the UK solar industry” said STA CEO Paul Barwell. “Jobs, growth and carbon and renewables targets will be at risk if these duties are applied on the 5th June. The UK is voting ‘NO’ to duties today, which is great news, and we are confident there will be many other countries voting the same way.”
The EC argues that cheap Chinese imports of solar PV equipment are damaging European solar manufacturing through the sale of panels below cost price. It proposes to impose duties of 47 percent levied from June 6th for a trial period only. The duties would be withdrawn if both sides in the dispute managed to reach a negotiated settlement. Given that there are around €21 billion worth of solar panels in the EU at present, this case is by far the largest trade dispute the EC has had to deal with. Chinese representatives have said that meetings held so far have been “constructive” but that where would definitely be a Chinese response if the EU decided to go ahead and impose duties.
“Clearly the European Commission is in a difficult position, as this decision could set a precedent on future anti-dumping cases” said STA PV specialist Ray Noble. “In my view, this can only be resolved by China and the Commission sitting around a table and coming up with a sensible compromise. We are very concerned that the solar industry is being used as a pawn in this process. Jobs are at stake. We have to find a solution.”
France and Italy continue to be supportive of duties but Germany, although initially enthusiastic, has now begun to favour a negotiated settlement. Chinese premier Li Keqiang has warned that the dispute could harm both sides if duties are imposed but German Chancellor Angela Merkel has promised that Germany will do all it can to prevent the EU from doing so.
Further information:
