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Intent on countering low-cost solar glass from China, the European Union again threatened increased tariffs on Chinese imports on December 19th, promising charges as high as 36.1 percent.

The announcement comes a year and a half after the EU first started flirting with the idea of punishing Chinese producers amid allegations of dumping low-cost product selling at below cost on the European market, undercutting local manufacturers.

The dumping, they said, was having a detrimental effect on the ability of EU manufacturers to stay above water. As previously reported on this blog, the dumping and ensuing oversupply helped drive down solar panel prices 24 percent over the last year. To get things moving in March, the EU leadership promised an investigation.

Launched by European Commission on behalf of EU Pro Sun, an industry association of solar producers from 20 EU countries, the investigation suggests that Chinese companies have been able to dump under market price solar panels and parts on European consumers at a loss thanks to significant financial support from the state. According to a New York Times report, the European Union represented 80 percent of Chinas solar sales worldwide so the low prices undercut the local market to the tune of $26.5 billion last year, or 6.5 percent of all E.U. imports for that period.

The most recent announcement comes nearly five months after the EU imposed anti-dumping charges for a period of five years to help aid producers such as GMB Glasmanufaktur Brandenburg GmbH, according to a Bloomberg report. However, proponents of the levies now argue that the charges are not high enough.

The EUs duties range from 0.4 percent to 36.1 percent, according to the report, varying according to which producer is targeted. They are also intended to counter subsidies from China, which allow the producers to sell the glass at below cost.

Previous tariff efforts have earned scorn and action from China. In late 2012, Beijing responded to the promise of EU action with a call to action of their own, beginning with a proposal to apply tariffs on solar-grade polysilicon from European exporters, a key component of panel production, according to a Reuters report.

Later narrowing their focus, China filed a formal complaint with the WTO, taking aim at member states including Greece and Italy. The complaint accused the countries of offering a higher electricity tariff rates for domestic panel producers who used local components. While the precise details of the WTO complaint remain unclear, by filing it, China has initiated a 60-day period of potential talks between Beijing and the EU. If no resolution is found, China may appeal to the international trade organization to issue a judgment on the matter.

The EU tariff action reflected an earlier approach in the U.S. who moved on levies in response to similar allegations of solar panel dumping on the domestic marketplace, cutting away at the ability for panel manufacturers to succeed without government assistance.

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EU Targets Chinese Solar Once Again