European manufacturers of solar modules welcomed the decision by the EU to impose anti-dumping photovoltaic panels from China, which should helped to stem the flow of solar panels funded by the Chinese state, arriving in Europe.
The association that defends the initiative – EU ProSun – is nevertheless critical of the system of minimum prices established by the settlement agreement concluded between the European Union and China and looked forward “to the European Court of Justice that she declared null and void. ”
This defense of the European market were imposed following a complaint lodged by EU ProSun, a group where the majority of European manufacturers of solar modules.
“The customs taxes about 48% imposed by the European Union, should at least partially compensate for the huge amounts of money invested by the Chinese government to the European solar manufacturers offside in their own market and break the market itself same. This is a conflict between market economies and the largest planned by a state economy. Without these defensive measures, companies are free market to thank you five-year plans of the People’s Republic of China, subsidies illegal dumping and its “commented Milan Nitzschke, President of EU ProSun.
According to the Chinese five-year plans for putting the hand in the global solar industry market has been established overcapacity of production equivalent to double the global demand.
Such market distortions depreciate prices artificially, which means that no company of any country apart from China, can not operate profitably.
Also according to EU ProSun, China now controls over 80% of the global solar market, impacting many companies in Europe, the USA, South Korea, and even for other, forcing them to cease their activities in the solar sector.
Milan Nitzschke goes on to state: “These tariff on solar are the first glimmer of hope for European companies to return to the market with high quality products.” Nevertheless, EU ProSun is very critical on minimum prices set on Chinese solar imports: “The agreed minimum prices with China are far too low and even lower than the actual cost of manufacturing solar products in China.”
Under a bilateral agreement, the European Union and China, in fact, agreed that the photovoltaic panels sold to a floor price of 0.56 cents would be exempt from anti-dumping measures. European solar companies have thereto filed a complaint with the European Court of Justice against the agreement they deem illegal.
“We expect that the European Court finally declared null and void the system of minimum prices. Secondly, customs duties decided by the European Union shall apply to all Chinese solar imports. European Court should restore a free market and rational Europe completely free of subsidies and dumping of the Chinese government, “said Mr. Nitzschke.
The amicable agreement on minimum prices does not apply to Chinese companies that violate the floor price of 0.56 cents without selling, or 0.60 cents per watt provided within the EU.
For EU-Prosun, indicators already show that some Chinese companies violate this agreement by selling below the floor price fixed; These violations could lead to a partial or total cancellation of the agreement between China and the EU. Also, any violation of the agreed price will lead to the application of customs duties on the products of the respective manufacturers. If serious or numerous violations of the agreement, there will be a full taxation of customs duties.