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The last resolution on the import of solar panels from China presented by EU Commissioner for Trade Karel De Gucht created an intense debate in Europe. Differences on production costs between the two markets are making an economic competition a sort of trade war with a potentially very negative impact on EU-China political relationships. De Gucht presented a proposal to establish an anti-dumping plan against European imports of solar panels from China with duties equal to 47 percent. The decision will be made on Wednesday and, if the measures are approved, it will cover a period of six months until December,guccifullyan, after which the EU will be able to extend its validity for another five years. But the EU is divided. Many members seem to agree with this plan,www.hotelwestpoint.com/?page_id=21&lang=en, except for important countries like Germany, Britain and the Netherlands. According to Reuters, a spokeswoman for the Chinese mission to the EU said in a statement that such trade protectionism is not acceptable to China and would seriously sour the climate on bilateral trade and economic engagement. The paradox is that the De Gucht proposal started its path some months ago after top industry leader Solar World, a German company, protested against Chinese "unfair competition." But German Chancellor Angela Merkel now fears a possible retaliation by China in other economic fields,burberry handbags, where bilateral trade amounts to $144 billion. According to the Guardian, in the UK,princealbertparklandhealth, which sources the vast majority of panels from China,True Religion Jeans outlet, this protectionist measure could cut the industry by up to 80 percent, costing the economy £3.46 billion ($5.26 billion) and 38,600 jobs over a three-year period, if a duty of 60 percent were imposed on solar panel imports.France and Italy are the two major countries which support De Gucht. In fact,gucci Outlet, Italy is one of the most engaged countries in the solar panels market. From 2010 to 2011,chloe outlet, Italy installed three times more panels than the US,bottega veneta outlet, building a renewable energy system which ensures 12.4 megawatts of energy against 3.6 megawatts in the US. At the same time,Oakley Outlet, Chinese exports have conquered an important part of this sector.If the EU just wanted temporarily to protect its own markets from an stronger competitor, De Gucht's document would be comprehensible. But the past shows that behind every protectionist decision, there is a national strategy to contain and boycott a stronger competitor. In March,Oakley Outlet, De Gucht flew to Boston and met US President Barack Obama to discuss energy issues. The latest argument cannot be separated from the bigger US-EU agreement, the Transatlantic Trade and Investment Partnership. The US government has already closed the door of its panels market to China, establishing anti-dumping duties equal to 250 percent. A similar decision by the EU would probably follow a shared plan between the US and Brussels. In February, Obama met European Council President Herman Van Rompuy and European Commission President José Manuel Barroso, to start officially the talks about this general agreement,Prada bags, seen by several observers as a sort of economic NATO and the energy sector is a very important part of it. The US is moving away from dependence on foreign oil,Cheap Prada Outlet Shop Online Sale Prada bags and Prada handbags. Free Shipping!, while China is becoming increasingly dependent on imports. Obama's government is probably writing a new energy agenda aimed at a diversification plan based on shale gas inner production and renewable sources development. The US and the EU are clearly redefining their economic strategy,http://www.princealbertparklandhealth.com/prada.html, trying to defend their energy companies from Chinese competition. But some European partners seem uncertain what to do. Germany won't accept losing significant trade with China, and even Washington's closest European ally, Britain, is worried about the consequences of these possible measures against China. The EU Commission doesn't seem to be really interested in the first two aims of renewable sources, environmental protection and energy diversification, but just willing to boycott Chinese production through an alliance with US. All these point to an old question: Is the "free market" really free?
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