The European Council has backed measures proposed by the European Commission to limit imports of Chinese solar panel products to the EU and to impose heavy tariffs on Chinese firms that don't observe the limits.
The Commission proposed earlier this year to impose import duties for two years on Chinese firms exporting solar panels to Europe.
The tariffs were drawn up after an investigation by the European Commission into the trade practises of Chinese solar firms.
However the European Commission also proposed a settlement with Chinese companies that they would be exempt from the tariffs if they agree to limit the levels of exports to the EU and to keep prices above a certain floor level.
The deal is designed to prevent Chinese firms from 'dumping' cheap solar goods on the EU market at below-cost prices, a practise that EU solar companies say caused them damage.
Europe accounts for three-quarters of the global photovoltaic (PV) market and over 20 manufacturing firms in the region have sought protection from creditors since 2010. EU firms last year asked the Commission to investigate the market and the EU executive body found that Chinese firms were not only dumping their products on the EU market but also receiving government subsidies.
In June it imposed provisional import tariffs of around 47 per cent and two months later reached an agreement with Chinese firms on limiting imports.
Chinese firms that do not agree to limit exports will incur duty rates averaging 47.7 per cent.
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