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On Saturday, July 27, China and the European Union announced on the same day that the two sides reached a solution to the PV product trade dispute. The statement made by Central Europe has released goodwill, preventing the escalation of this unprecedented trade friction. Just two months ago, this is a world-famous trading partner that is still triggering a broad trade war.
Shen Danyang, spokesman of the Chinese Ministry of Commerce, characterized this result as "achieving price commitments" and said that China "appreciated and welcomed this." European Commission Trade Commissioner De Gucht said, "We have found a friendly solution."
As of now, neither side has disclosed the details of more price commitments and solutions. Peripheral stakeholders can only get sporadic information from media reports: the price promise is between 55-57 euro cents per watt, possibly 56 euro cents per watt. The whole solution is unclear.
When the local time on July 29th, Japan, on Monday, De Gucht attended the only press conference of the European Commission on the same day, only 7 minutes to briefly explain the main principles of the "solution".
At the time of the summer break in Europe, De Gucht apparently could not go on vacation like Other EU officials. However, when he went to the stage, he seemed relieved and relaxed. He also joked to the reporter: "I thought you were all on vacation."
De Gucht said that his solution to Central Europe was "satisfactory". Although some industry associations expressed "unsatisfaction", he "does not agree".
On Saturday, EU ProSun, the European solar industry association that initiated the anti-dumping complaint against China, said through the media that even in accordance with the current price commitments, Chinese products entering the European market still constitute dumping. EU ProSun also threatened to sue the European Court of Justice (ECJ) to overturn the agreement.
The “De Gucht Edition†of the Sino-European PV dispute solution is far from simply relying on the “price commitmentâ€. In fact, it includes three aspects: price commitment, quantity control, and product restrictions. At the same time, these three trades. The role of trade defence measures is progressive and cross-cutting.
In terms of price commitments, China's PV product exporters who “voluntarily†join the program will avoid an average of 47.6% of temporary anti-dumping tariffs by committing the lowest export prices. Exporters who have not joined the program are required to pay this punitive tariff if they want to export to Europe.
De Gucht said that Chinese PV exporters who voluntarily joined the program accounted for about 70% of all Chinese exporters; about 30% did not.
The quantity control is the second level of the 70% of Chinese exporters participating in the “price commitment†program: the annual export to Europe is subject to the upper limit. Exporters who exceed the cap will be subject to an average tariff of 47.6%.
Reuters reported on the 27th that if China's solar energy products exported to Europe in 150,000 megawatts in 2012, about half of which is 0.7 million megawatts can be exempted from punitive tariffs.
Finally, the third limit is to add code from the perspective of the industry chain, that is, product restrictions. In the photovoltaic industry chain, the EU itself cannot be self-sufficient in its products, and it can be exported and supplemented by the “price commitment†of Chinese products. The self-sufficient products of the EU need to compete with global products and also receive additional Protection: Chinese products will be subject to an average tariff of 47.6%.
These measures are derived from the anti-dumping provisions of the WTO rules, as well as EU trade remedy regulations; progressive and cross-cutting will create widespread and complex obstacles to the future export of Chinese PV products to the EU.
A lawyer who did not want to be named and has more than 20 years of experience in trade law said to the reporter that for Chinese exporters, the result of this negotiation is very strict; all the conditions must be met. It is extremely difficult.
For example, the lawyer said: According to the price commitment, Chinese companies must report the sales data of the products exported to Europe to the European Commission within 15 days after the end of each quarter. “To count the sales of solar panels and components within 15 days, the time is too short and too short.â€
As an anti-dumping investigation agency in the importing region, the European Commission has thus obtained the supervisory power to fulfill its commitments to exporters. Because the price commitment once it becomes effective, it has legal effect. If the exporter violates the promise, the European Commission has a unilateral “sanctionâ€.
"This price commitment is not designed for the photovoltaic industry," the trade lawyer said.
The China Chamber of Commerce for Electrical and Mechanical Industry, on behalf of Chinese PV companies, started negotiations with the European side. In a joint statement on the 27th, he said: "The price commitment reflects the will of the vast majority of Chinese companies, allowing Chinese PV products to continue to export to the EU and maintain a reasonable market share under the trade arrangements negotiated between the two parties."
Abstract The China-EU PV dispute suspense drama has come to an end, but the implementation of the follow-up negotiations may be more complicated than the current disclosure, and it is all over the "calculation." On Saturday, July 27, China and the European Union announced on the same day that the two sides reached a settlement on the trade dispute over photovoltaic products...
The China-EU PV dispute suspense drama has come to an end, but the implementation of the follow-up negotiations may be more complicated than the current disclosure, all over the "calculation."