Canadian Solar, ReneSola To Withdraw from EU Trade Deal

Shares of solar panel companies Canadian Solar (CSIQ) and ReneSola (SOL) rose in Friday’s afternoon trade after both companies said they will exit the European Commission’s minimum import price (MIP) agreement.

CSIQ shares are up 5.3% at $33.17, with a 52-week range of $18.68 – $41.12; RSOL shares are up 9.2% at $1.42, with a 52-week range of $1.20 – $3.62.

The European Commission had officially removed the companies after its Directorate General for trade had earlier recommended that the two companies, along with privately owned ET Solar, be excluded from the trade deal. The MIP agreement allows companies to sell into Europe above the minimum import price (MIP) and to keep sales within an annual quota.

Canadian Solar said despite the withdrawal, the company believes it “duly complied with all the terms and conditions.” CSIQ went on to note that it thinks the decision “lacks merit and is arbitrary.” The decision by the European Commission will not affect its Q2 and full year 2015 guidance.

ReneSola had also responded in a letter to customers that it has decided to exit from the MIP list. The company said that following its exit from the MIP deal, it will focus on OEM manufacturing, improving quality, performance and cost.

As manufacturers outside the trade agreement, Canadian Solar and ReneSola must now pay a 47.6% trade tariff.

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