The European Commission has softened a proposal to extend anti-dumping duties on Chinese solar panels, a document seen by Reuters showed, after opposition from a majority of EU countries that want lower import prices.

The Commission, which oversees EU trade policy, presented four options, with a recommendation to limit the extension of measures to 18 months, instead of an original 24, and making clear that this period represents a final phasing out of duties that have been in place since 2013.

The issue was put to a meeting of the EU’s 28 commissioners yesterday, a source said. The Commission faces a delicate balancing act between the interests of EU manufacturers and those benefitting from cheap imports while also being concerned about the response from Beijing, seen as a possible ally in the fight against protectionism.

But Luc Triangle, general secretary of trade union federation industriAll Europe, expressed his concern.

“Bowing to China against the Commission’s own assessment would create a fatal precedent also for other industries,” he said.

Bowing to China... would create a fatal precedent

The EU and China came close to a trade war in 2013 over EU allegations of dumping by Chinese solar panel exporters.To avoid that, both sides agreed to allow limited tariff-free imports of panels at a minimum price of €0.56 per watt, anti-dumping duties of up to 64.9 per cent for those outside the agreement and anti-subsidy duties capped at 11.5 per cent.

A majority of EU countries last month opposed the Commission’s initial plan to extend anti-dumping duties for another two years, putting pressure on the EU executive to soften its position.

The EU governments did back a separate two-year extension of tariffs designed to counter subsidies. Under the new recommendation, they would also only be extended for 18 months.

The Commission has also proposed cutting the minimum price for panels to €0.46 per watt. In its new proposal this price could be steadily reduced.

The EU executive said in a paper sent in December to EU members that ending the measures would likely lead to a significant increase in dumped imports of solar cells and modules and job losses.

EU ProSun, a group of manufacturers including Germany’s SolarWorld, said the measures had allowed the EU industry to invest and recover and condemned the document’s recommendation.

The case is due to be settled by March 3.

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