EU: Industry body calls for end to anti-dumping levies

25/02/2013 12:00 - 433 Views

A study commissioned by AFASE (Alliance for Affordable Solar Energy) shows that levies on Chinese technology could lead to job losses in European industry.

The study called “The Impact of Anti-Dumping and / or Countervailing Measures on Imports of Solar Modules, Cells and Wafers from China on EU Employment and Value Added” was presented to the European Commission.

Anti-Dumping and/or Countervailing duties at all levels on imported Chinese solar products will lead to decreased demand for solar products immediately translating into very significant job losses and less value added along the whole European photovoltaic value chain, says the study.

The study released by the independent economic Swiss institute Prognos, presents three negative scenarios of duties: 20%, 35% and 60%.

A tariff of 20% would cost 115,600 jobs in the European Union during the first year after the implementation. This would add up to 175,500 job losses until the third year. The value added lost would sum up to €4.74 billion in the first year and to €18.4 billion during three years with a tariff of 20%.

On the other hand a tariff of 60% would lead to 193,700 job losses in the whole EU during the first year and to 242,000 in the third year. The total loss of value added would amount to €7.86 billion during the first year after the implementation.

In total over three years €27.2 billion of value added would be at stake.

“The potential positive impact of duties for the EU solar producers is dwarfed by the negative impact on employment in the EU. Due to the imposition of tariffs production of EU solar products increases and some jobs are being created.

However, the jobs created by the EU solar producers represent at the very most 20% of the jobs lost along the PV value chain,” Thorsten Preugschas, CEO of the German project developer Soventix, a spokesperson of AFASE told New Europe.

Duties will lead to a considerable decrease in demand for solar products which results on the one hand in less demand for solar installations and services they say.

The EU Commission started anti-dumping proceedings against China relating to wafers, cells and modules on September 6, 2012 while on 8 October an anti-subsidy initiative was launched.

February 24, 2013 - 12:31PM

By Frederico Grandesso

Source: neurope.eu