EU's 47% tariff on China's photovoltaics has a "transfer"

Abstract On May 15th, local time in Brussels, the European Commission and the EU member states held consultations on the imposition of anti-dumping temporary tariffs on solar energy products in China. The 27 member states of the European Union can make oral or written statements on this day or the next few days, including support, anti-...
On May 15th, local time in Brussels, the European Commission and the EU member states held consultations on the imposition of anti-dumping temporary tariffs on solar energy products in China. The 27 member states of the European Union can make oral or written statements on this day or the next few days, including support, opposition and abstention, and be recorded by the European Commission.

Lawyers familiar with the case and EU law analyzed this newspaper. If there are fewer than 15 member states, the European Commission will definitely impose a temporary tariff on China's solar energy products exported to Europe from June 6. If there are 15 or more member states opposed, then the European Commission will have two options to continue or revoke this temporary tariff.

EU Trade Commissioner Karel de Gucht submitted a proposal to the European Commission last week to support anti-dumping duties on Chinese solar energy products exported to Europe. The plan is to levy a temporary rate of 47% from June 6. tariff.

The proposal to impose anti-dumping duties on Chinese solar photovoltaic products has been sent to member states. The European Commission needs to explain the conclusions of the investigation to the member states during the consultations on the 15th. This is also the staged conclusion of the European Commission’s anti-dumping investigation on solar products launched by China last year. The final ruling will be made in December this year.

This closed-door monthly meeting is called the Anti-dumping Committee. The participants include the European Commission's Trade Directorate and 27 trade representatives who specialize in anti-dumping matters.

In an interview with reporters, Benoit Servais, a partner of the local Van Bael & Bellis law firm in Brussels, analyzed the development possibilities of the case at this stage. Sivas has more than 20 years of experience as a lawyer in trade law. Sevas said that if less than 15 member states oppose, then China's solar products are difficult to avoid temporary tariffs; if, on the contrary, at least 15 or more members formally oppose, then the European Commission has two options.

First, although there is a majority of opposition, because the European Commission still has the right to implement temporary tariffs, the temporary tariffs will be as usual, and the final punitive tariffs will be negotiated and decided after six months.

Second, the European Commission can revoke the temporary tariffs, and then wait until November to negotiate with the member states on the proposal. If there is still most opposition, then there will be no final punitive tariffs in December.

According to the EU's official statement to the Anti-Dumping Committee, the opinions of the member states are not mandatory for the European Commission. Sevas said that member states can exert pressure on the European Commission, but the decision to levy temporary tariffs is not in the European Commission.

However, if more than 20 or more absolute members vote against it, Sevas said, "The European Commission needs to consider ways to continue: either continue to levy conflicts with member states, or not levy, and then China negotiations.” This anti-dumping investigation against solar energy products in China was initiated by EU ProSun, an industry association representing the interests of solar manufacturers in the European Union. EU ProSun claims that Chinese solar products have entered the EU at a lower cost price, causing damage to EU companies.

At the same time, since January this year, industry organizations such as AFASE, which represent solar energy importers, service providers and consumers, have also stepped up their lobbying against EU ProSun. The EU's anti-dumping investigations have also dealt a severe blow to the midstream and downstream enterprises of these solar energy industry chains.

In March, it was reported that after the European Union implemented the registration system for solar energy products in China on March 6, a large number of Chinese products imported into the EU were backlogged in various customs. Importers are concerned about their losses due to punitive tariffs. So far, the situation has not shown signs of improvement. If the temporary tariff is implemented on June 6, there will be a tariff retrospective period between March 6 and June 6, which will not be determined until the end of December.

Sebastian said: "At this stage, the European Commission believes that (China's solar energy products exported to Europe) does have dumping, and it does hurt. The two are indeed connected. At the same time, there is indeed a demand from the manufacturers' alliance for the increase of tariffs. This meets the conditions for taking trade remedy measures."
In other words, the current stage of the European Commission believes that the interests of European manufacturers are greater than those of European importers, service providers and users, and the evidence provided by the latter is not convincing. The European Commission’s Directorate-General for Trade said that the investigation was conducted in accordance with the law and the conclusions were based on the evidence and information collected.

Since this week, the space for China-EU negotiations still exists. On occasions such as the EU Anti-Infringement Commission meeting, Beijing needs to win the support of EU member states. Chinese Premier Li Keqiang will visit Switzerland and Germany next week. Germany has always supported political settlement of trade disputes.

Sevas said: "After November, different conclusions may be drawn. Any option will be better than the 47% tariff." For example, in general, the final punitive tariff will last for 5 years, but it can be negotiated. Shortened to 2 to 3 years.

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