Massive violation of EU trade deal by Chinese solar manufacturers / EU ProSun submits over 1,000 suspected trade violations to the European Commission

Brussels (ots) - Today, the European solar industry initiative EU
ProSun submitted over 1,000 pages of documentation to the
Directorate-General for Trade of the European Commission, containing
about 1,500 proposals by Chinese solar companies offering prices
below the minimum level agreed by the EU Commission and China.

Milan Nitzschke, president of EU ProSun said: "EU trade rules are
being systematically violated by Chinese manufacturers. Not one
Chinese manufacturer seems to follow the agreed minimum prices for
imports into the EU. Dumped Chinese solar products continue to flood
the EU market, destroying European industry and jobs. The Commission
must act fast to stop these violations and implement sanctions."

The EU imposed anti-dumping duties on Chinese solar imports in
mid- 2013, after state-subsidized dumping from China drove dozens of
European solar companies to ruin. In order to circumvent these duties
of around 50 percent, over 100 Chinese solar manufacturers offered
the EU a contractual undertaking to only import above a minimum price
of 56 cents per watt. The European Commission and the European
Council agreed to this minimum price offer. However, it is obvious
that Chinese companies are neither paying duties, nor observing the
minimum price agreement.

"Chinese manufacturers never cease to trick, deceive and
circumvent their own undertaking and EU rules," says Nitzschke.
"Chinese tricks range from kickback payments camouflaged as
'marketing grants', to false product shipments massively
under-declaring the quantities actually imported into the EU. It is
like a Chinese fish market - anyone who thinks the price is not low
enough simply gets another crate of solar modules for free!"
According to EU ProSun, the majority of Chinese companies use shady
middlemen for these deals who work as a buffer between the Chinese
companies and the European authorities.

According to EU ProSun, whoever takes part in such minimum price
and customs violations risk severe punishment. Milan Nitzschke said:
"The contract between the EU Commission and the Chinese companies
clearly states: The affected manufacturer will be barred from the
minimum price agreement for even minor violations of the
requirements. The duty of around 50 percent of the import price is
then due immediately." This duty must be paid by the European
importer, even after the fact when applicable. In the case of grave
customs violations, criminal prosecution is also possible.

Now the entire minimum price agreement between the EU and China
must be reviewed. Nitzschke said: "The minimum price agreement that
the European Commission negotiated with China is unworkable. There is
still no end in sight for Chinese dumping and the EU must impose
duties across the board in the face of such illegal and flagrant
trade violations."

Since its inception in 2012, EU ProSun has supported fair
competition and the sustainable expansion of solar renewable energy.

More information:
www.prosun.org
Email: info@prosun.org
+49 (0)160 90923515