China and the European Union have settled their trade dispute over imports Chinese solar panels, after a six-week tug of war, Brussels and Beijing confirmed Saturday, dpa reported. The EU had accused Chinese solar panel makers of dumping products on the European market. Government subsidies in China allowed them to sell their products below production cost in the EU, it alleged. The two sides reached an "amicable solution" and agreed to minimum prices and import quotas for Chinese solar products, EU trade commissioner Karel De Gucht said. The Chinese government welcomed the deal. It "showcased pragmatic and flexible attitudes from both sides," Ministry of Commerce spokesman Shen Dayang was quoted as saying by the official Xinhua news agency. However, the association of European solar panel manufactures that had filed the anti-dumping complaints that led to the dispute called the compromise a "scandal". Diplomatic sources said the agreement called for a minimum price of 56 cents per watt of output. A cap was to also be placed on the total output of Chinese imports of solar panels to the EU of 7 gigawatts per year. The deal would cover exports from about 90 Chinese exporters, representing 60 per cent of panels sold in the EU, the European Commission said. The companies that comply with these conditions would not be subject to punitive tariffs. -- SPA 20:11 LOCAL TIME 17:11 GMT تغريد
