European Union trade authorities Monday signaled they would push ahead
with a plan to impose import tariffs on solar panel equipment made in
China, despite heavy lobbying from Beijing that appeared to be weakening
support for the duties among EU member governments.
The fight over solar panels
is one of the biggest-ever disputes over unfair trade under the
decades-old regime of international trade rules. Europe is the world's
largest market for solar panels,
which accounted for 7% of China's total exports to the EU in 2011.
Import duties could deliver a sharp blow to Chinese producers already
struggling with overcapacity and import tariffs in another major market,
the U.S.
Zhong Shan, China's vice minister of commerce and
international trade, met with EU trade chief Karel De Gucht in Brussels
on Monday to discuss the solar-panels
case and another unfair-trade investigation, related to
telecommunications equipment, that the commission is close to launching.
The European Commission, the EU's executive arm, has drafted a
plan to slap tariffs of up to 67.9% on Chinese producers of solar panels,
solar cells and silicon wafers to counter what it says are imports sold
at well-below-fair-market prices, according to a copy of the plan seen
by The Wall Street Journal. But a majority of EU governments now appear
to oppose the plan, people familiar with responses handed to the
commission, the EU's executive arm, said Monday. German government
officials said over the weekend that they oppose the plan.
The commission faces a legal deadline of June 6 to decide on
the duties, which will last for six months. The commission can set
temporary duties on its own, without the support of member states.
"At this stage, any potential temporary measures are an
emergency response to rebalance the market place for European companies
facing life-threatening dumping and unfair competition from China's
solar panel industry," said John Clancy, spokesman for Mr. De Gucht.
"In addition, Commissioner De Gucht also made it very clear
to the Vice-Minister that he was aware of the pressure being exerted by
China on a number of EU member states which explains why they are
positioning themselves as they are in their advisory positions towards
the European Commission," Mr. Clancy said. "This is why it is so
important in trade defense cases that it is the European Commission
which has the role of deciding on provisional tariffs since the European
Commission can maintain an independent position. It is the role of the
European Commission to remain independent, to resist any external
pressure and to see the 'big picture' for the benefit of Europe, its
companies and workers based upon the evidence alone."
In December, the commission faces another decision, whether to impose permanent duties on Chinese solar panels that would likely last five years. A simple majority of member states can block this decision.
Even if Chinese solar-panel manufacturers escape duties
related to the current complaint--which accuses them of unfair
pricing--they face another hurdle possibly as soon as August. European
manufacturers have brought a complaint against the Chinese government
accusing it of giving solar-equipment manufacturers subsidies that are
prohibited under international trade rules.
Antisubsidy complaints tend to garner more support from northern European countries that are skeptical of trade barriers.