23 May, 2024

Where the European Union decides not to use the anti-dumping duty

Since the beginning of the year, of the 56 opinions issued by the European Commission, 25 % concern the imposition of anti-dumping duties and 30 % indicate an initiation of an investigation or a review of anti-dumping duties on a variety of products (cf.China-France: Chinese President visits Paris). While anti-dumping duties have been extended for nearly 20 years on bicycles manufactured in China and more recently on electric bicycles, it is surprising that these measures have been lifted on Chinese solar panels, products sold at very low prices on the Community market, even though Brussels hopes to reach 40% of photovoltaic panels made in EU by 2030. The largest solar panel plant in Europe is expected to be established by 2025 in France in Moselle.

Dumping, a commercial practice strictly prohibited by the World Trade Organization (WTO), consists in selling products at prices below cost, in order to collapse the existing market and then raise its prices, ruling as a monopoly on the market.

The European Union, like any country or bloc of countries, has the opportunity to react, after 12 months to 15 months of investigation, and to introduce anti-dumping duties to ensure that the products concerned are imported into the territory, at a real market price, in order to protect Community production.

Many actions are carried out by the Union in this direction concerning many products, many of which come from China. China's solar panels were affected for a time by anti-dumping duties that were not extended by the EU, resulting in the collapse of Community production. The question that many people are asking is why the Union has not sought to protect its production any longer?

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