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EU Opens Dispute at WTO Over Solar Panel Tariffs

The European Union has asked for consultations under World Trade Organization rules to discuss safeguard tariffs the United States is levying on solar panels. The request, filed Feb. 7, is the first step in a dispute process on whether the…

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tariff-rate quota violates international trade law. However, the EU did not assert that the U.S. is out of compliance with the General Agreement on Tariffs and Trade, as China did when it requested consultations earlier this week (see 1802070022). The EU said Germany is a major exporter of solar panels. Tariffs on out-of-quota solar cells are 30 percent in the first year, and decline by 5 percentage points each year until reaching 15 percent in the fourth year (see 1801230052). They apply under Section 201 of the U.S. 1974 Trade Act, which is designed to safeguard domestic industry.