(Photo : The Solar Panel)

"We have found an amicable solution that will result in a new equilibrium on the European solar panel market at a sustainable price level," said European trade commissioner, Karel De Gucht.

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The China and European Union has settled with an agreement of setting a higher price for sales of the solar panels. This will avoid undercutting the European producers. The producers have blamed the Chinese manufacturers from taking advantage of the big loans from the state-owned banks and other government funding. This enables China to charge prices that would be very uneconomical.

This issue has resulted with heated criticisms from the European manufacturers, with the same dispute between United States and China.

De Gucht's decision to carry out a threat to charge tariffs on the China solar panels indicated much effect in the union in terms of retribution. Angel Merkel, chancellor of Germany initiated negotiations to prevent any dangers from the German exporters. All the importers from the European Union opposed the China solar panel tariffs.

The officials of the European Commissions did not give any details about the deal. There is also no information about the price that the Chinese exporters would have to bay. The specific details will only be announced once the arrangement has been settled. As speculated, that the agreed price is at a minimum of 0.56 euros per watt.

Milan Nitzchke, the president of the EI Prosun said that the agreement "is contrary in every respect to European law." The price of 0.55 to .057 euros is a "the current dumping price for Chinese modules." The agreement covers 90 companies that will not longer be charged of tarrifs. All Chinese exporters who do no agree to the terms will face tariff charges at 47.6 percent on August 6.