A GROUP of free-trade-oriented northern European nations urged the EU’s trade chief Friday to defuse a growing dispute with China or risk a negative spiral that could choke exports.

    Sweden, Denmark and the Netherlands said EU Trade Commissioner Karel De Gucht should find a diplomatic solution with China to avoid a tit-for-tat trade war, after Brussels imposed tariffs on Chinese solar panels and the Chinese Government retaliated with an investigation into European wine.

    “It is not the right way to go. When the one side begins to close up, the other continues. And then we have a negative spiral that doesn’t stimulate trade,” Swedish Trade Minister Ewa Bjorling told reporters at a meeting in Luxembourg.

    The European Commission, the EU executive, accuses China of dumping billions of euros’ worth of solar panels below cost of production, unfairly winning 80 percent of the EU market.

    However, De Gucht softened his earlier plan to levy punitive tariffs averaging 47 percent immediately, and went ahead with tariffs at 11.8 percent for two months, leaving a window for Brussels and Beijing to reach a negotiated solution.

    De Gucht is expected to travel to Beijing on Thursday to participate in talks with China.

    “Naturally we want a solution as quickly as possible,” Bjorling said. “One where we don’t lose trade with China, and at the same time makes sure there are reasonable prices on solar panels so that we can reach our climate goal.”(SD-Agencies)