EU/CHINA : BEIJING SEEKS COMPROMISE ON SOLAR SPAT WITH EU.
The European Union and China are very close to finding a solution to the solar panel row as Beijing has offered to set up a tariff and quota limit on its exports of solar panels, cells and wafers to the Union's market.
As the European Commission's negotiators are currently holding talks with their Chinese counterparts in Beijing, EU officials confirmed, on 5 July, that a proposal for a deal had been put forward by China, which could potentially end the solar trade spat.
Under the proposal, China would limit its exports of photovoltaic modules to the EU to ten gigawatts a year and impose a minimum price of around 0.5 per watt, which is the actual cost of production.
On 4 June, the Commission decided to slap temporary punitive customs duties on imports of solar panels originating from China. Starting at 11.8% until 6 August, the rate will then go up to around 47%. The Commission's strategy to apply low duties for a two-month period, which was meant to pressure China to come to the negotiating table, seems to be working.
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