EU-China Solar Dispute Continues

The European Commission (EC) has confirmed that it will not impose provisional countervailing duties (CVDs) during its anti-subsidy investigation concerning solar panels, cells and wafers imported into the European Union (EU) from China.

The anti-subsidy investigation is running parallel to the EU's anti-dumping (AD) investigation on solar panels, and was initiated on November 8, 2012. The EC can, within a period of 9 months, decide to impose provisional CVDs, but it has been decided that, while the EC will continue working actively on the case in order to arrive at definitive findings that are due at the end of this year, the investigation will continue, for the present, without any provisional measures.

As it is thought that any injury to the EU solar industry should already have been removed by the provisional AD duties and the price undertaking agreed with China on the same products, it is considered that this decision does not have an impact on the protection of the EU industry against unfair trade practices.

However, it has also been pointed out that the decision not to impose provisional CVDs does not, in any event, prejudice any subsequent decision which may be taken at the definitive stage of the investigation.

It was also confirmed that the parallel AD investigation is continuing after provisional duties were imposed on June 5, 2013, and a price undertaking was offered by the Chinese exporting companies after negotiations were accepted by the EC on August 2.

Experts are now analyzing comments and submissions received within the framework of the investigation after the imposition of the provisional measures. The Chinese companies' price undertaking entered into force on August 6.

It was emphasized that, when the EC finalizes its analyses in both the anti-dumping and anti-subsidy cases, the findings will be disclosed to all interested parties for comments. Only when the comments submitted are themselves fully analyzed and considered will the EC issue definitive findings in both investigations. The deadline for the imposition of definitive duties in both cases is December 5, 2013.

August 8, 2013

Source: Tax News