Commission considers anti-dumping duty on Chinese solar glass imports

Androulla Vassiliou, Member of the European Commission, while in official visit to China adopted, together with Cai Wu, Chinese Minister for Culture, the new joint declaration on cultural cooperation between the two sides. (EC Audiovisual Services).

Androulla Vassiliou, Member of the European Commission, while in official visit to China adopted, together with Cai Wu, Chinese Minister for Culture, the new joint declaration on cultural cooperation between the two sides. (EC Audiovisual Services).

The European Commission launched today (Thursday 28 February), an anti-dumping investigation into imports of solar glass from China. According to the relevant official announcement, “The initiation is based on a complaint lodged by the association European Union ProSun Glass, which claims solar glass from China is being dumped in the EU at prices below market value and causing material injury to the EU solar glass industry”.

The same source clarified that the investigation could take up to 15 months, “although under trade defence rules the EU could impose provisional anti-dumping duties within nine months if it considers these necessary”.

Solar glass is a special glass used mainly for the production of solar panels. It is an essential component not just of solar panels, but of many solar energy products. This is a different investigation than the ongoing one over the imports of solar panels and equipment launched by the European Commission last September. The EU solar glass market is valued at less than €200m.

The investigation

The Commission says it is legally obliged to open an anti-dumping investigation when it receives a duly substantiated complaint from EU producers, which provides ‘prima facie’ evidence that exporting producers from one or more countries outside the EU are dumping a product on to the EU market and causing material injury to the EU industry.

EU ProSun Glass, an ad hoc association representing European solar glass manufacturers, lodged just such an anti-dumping complaint on 15 January 2013. EU ProSun Glass’s collective output represents considerably more than the 25% of Union production required by law. The Commission also notes that the EU ProSun Glass is not formally affiliated with EU ProSun, a separate coalition of solar equipment manufacturers which launched the solar panel complaint last year. The Commission observes, “it found that the complainant brought sufficient elements showing:

(1) possible price dumping by the exporting producers on the EU market;

(2) injury suffered by the Union industry; and

(3) a possible causal link between the dumped imports and the   injury suffered by the Union industry.

The Commission concluded that there was sufficient prima facie evidence to warrant the opening of an investigation”.

What next?

The EC will send out questionnaires to various interested parties, such as exporting producers, Union producers, importers and associations. It will ask for information relating to the exports, production, sales and imports of solar glass. Once the interested parties have responded to the questionnaires, the Commission will verify the data, often by going to the premises of the companies.

On the basis of the information it has collected, the Commission will establish if dumping has taken place and whether the injury claimed is a result of the dumped imports. This examination will also include consider possible other factors that might have contributed to the injury.

In addition, the Commission will carry out the so-called “Union interest test”. The Commission will consider whether the potential imposition of measures would be more costly to the EU economy as a whole than the benefit of the measures would be to the complainants.

All that means the Commission would take into account the possible cost from retaliating measures imposed by China on European Union products.

Within nine months of the start of the investigation, the Commission will issue its provisional findings. There are three possible scenarios:

(a) impose provisional anti-dumping duties (normally for a six months period);

(b) continue the investigation without imposing provisional duties; or

(c) terminate the investigation.

Throughout the investigation, all interested parties have a right to make their views and arguments heard by sending in comments to the Commission and/or taking part in hearings. The Commission takes account of the comments received and addresses these in the remainder of the investigation.

The European Council is legally obliged to take a final decision over the imposition of any definitive measures within 15 months of the investigation being started. In the present case, that means before 28 May 2014.

Solar panels

As noted above the European Commission has initiated a similar anti-dumping investigation on solar panels and equipment of Chinese origin in September 2012. The nine month period provided by the EU procedure for the decision to impose the duty or not expires on June 2013. This is a much broader issue given that the value of solar panels and equipment imported in the EU from China, are of a much larger value. The European Sting has been monitoring this last affair very closely.

Only yesterday the Sting wrote: “The problem is, however, that the Chinese authorities do not seem to take this issue lightly. Towards the end of January, the Chinese Ministry of Commerce announced the imposition of anti-dumping duties with effect as from 1 February on two products originating from the EU and the US. Imports into China of the widely used solvents ethylene glycol monobutyl and diethylene glycol monobutyl ethers, produced by a number of European and American companies, will be penalised with anti-dumping duties ranging from 9.3% to 18.8%.

This is obviously a reaction to the recent anti-dumping investigations and measures introduced by the EU and the US against very important Chinese products and companies. The Chinese officials, after announcing this decision, commented that in no way they wish to start a trade war”.

It is obvious that the intentions of the Chines authorities were clarified by the swift imposition of anti-dumping duties, on solvents imported in China from the EU and the US. It is for this reason that today’s Commission announcement states the general interest point, by noting that, “The Commission will consider whether the potential imposition of measures would be more costly to the EU economy as a whole, than the benefit of the measures would be to the complainants”.

In short the Commission says that it will take into account the cost of possible counter action by the Beijing authorities against EU products imported into China. Obviously, if this cost to the EU economy as a whole appears of a greater value than the possible damage to the plaintiffs in the solar glass case, then the final decision for the imposition of anti-dumping duty may be withheld.

 

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Next time you fly, could you be boarding a train instead of a plane?

False promises to Small and Medium Enterprises

The Czech economy is thriving but boosting skills and productivity and transitioning to a low-carbon productive model is vital to sustainable and inclusive growth

‘Save Tuvalu; save the world’; UN chief echoes rallying cry from front lines of global climate emergency

This South African lawyer is reading while running marathons – for book donations

‘Proving our worth through action’: 5 things Guterres wants the UN to focus on in 2019

Digital: The EU must set the standards for regulating online platforms, say MEPs

UN Security Council hails ‘courage’ of Afghan voters

Human rights breaches in Azerbaijan and Sudan

There’s a global learning crisis and it’s leaving millions without basic skills

In Christchurch, UN chief calls for tolerance, solidarity to extinguish ‘wildfire’ of hate speech

Building the future of EU strategic foresight – Speech by Vice-President Šefčovič at the annual conference of the European Policy and Strategy Analysis System

Commission launches initiative for more sustainable cocoa production

‘Global care crisis’ set to affect 2.3 billion people warns UN labour agency

1.1 billion people still lack electricity. This could be the solution

‘Think beyond farm jobs’ to reach sustainable development, UN agriculture chief advises African youth

Girls still being treated as aliens in medicine in the 21st century

5 things COVID-19 has taught us about inequality

COVID-19: Commission provides guidance on EU passenger rights

If you want to make progress on all the major global challenges, start with water

We should treat data as a natural resource. Here’s why

These are the top risks for doing business around the world

Germany may prove right rejecting Commission’s bank resolution scheme

How Asia could be the winner in the US and China’s Belt and Road race

7 steps to becoming a ‘CEO Academy’

State aid: Commission approves amended Estonian scheme worth €450 million to support production of electricity from renewable sources

5 facts to know about Africa’s powerhouse – Nigeria

Does May have enough time in Parliament to table a soft Brexit deal?

This man swam under the East Antarctic ice sheet to highlight the impact of climate change

A 3-step path to securing critical infrastructure

FROM THE FIELD: Conversations about Conservation

EU invests more than €100 million in new LIFE Programme projects to promote a green and climate-neutral Europe

‘Starvation’ now a reality for displaced Syrians stranded in camp near Jordanian border

TTIP is not dead as of yet, the 15th round of negotiations in New York shouts

The unique role of business in building social good

The European Union’s Balkan Double Standard

Sustainable finance: Commission welcomes deal on an EU-wide classification system for sustainable investments (Taxonomy)

We’re all in the same boat on the SDGs. Here’s how we steer a course

COP25: MEPs push for CO2 neutrality by 2050

Anti-Semitism ‘toxic to democracy’, UN expert warns, calling for better education

Universal access to energy is a major challenge for the Arab world. Here’s why

“BRI cooperation is entering a new stage: we need a new and more constructive approach rather than waste time on suspicion”, China’s Ambassador to EU Zhang Ming underlines live from European Business Summit 2019 in Brussels

Cameroon: Clear ‘window of opportunity’ to solve crises rooted in violence – Bachelet

Plenary highlights: Commission changes, EU budget and climate law

Why flexible workspaces are the key to winning the talent war

Syria: UN-backed watchdog says chemical weapon ‘likely used’ in February attack

The world needs a circular economy. Help us make it happen

Alcoholic drinks: Commission tables update of rules governing alcohol excise duties

‘Going green’ is good business says private sector at UN’s COP24 climate conference

The US may be “open” to reviving TTIP, while the EU designs the future of trade with China

State aid: Commission approves €1.2 billion French “Fonds de solidarité” scheme for small enterprises in temporary financial difficulties due to coronavirus outbreak

Coronavirus (COVID-19): truth and myth on personal risk perception

These are the ‘positive’ tipping points that could slow global warming

2019 Innovation Scoreboards: The innovation performance of the EU and its regions is increasing

Summer 2018 Interim Economic Forecast: Resilient Growth amid increased uncertainty

At the age of 50, is Davos going through a midlife crisis?

Deepfake democracy: Here’s how modern elections could be decided by fake news

What if we did everything right? This is what the world could look like in 2050

We’re facing a ‘cold crunch,’ and it’s nothing to do with the polar vortex

England’s beavers are back, and they’ve already made a big impact

More Stings?

Advertising

Comments

  1. I was looking through some of your articles on this website and I believe this website is really instructive! Keep on putting up.

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s