The European Union and Chinese solar panel exporters have reached a settlement after weeks-long negotiations, with the exporters agreeing to sell their products at a minimum price in the EU market.

The settlement comes after negotiations that began in June when the EU announced that duties averaging 47 per cent on Chinese-made solar panels, cells and wafers would come into effect in August.

In announcing the settlement Saturday, EU Trade Commissioner Karel De Gucht said that he was satisfied with the offer by the Chinese solar panel exporters and that the agreement would stabilize the European solar panel market.

Chinese Ministry of Commerce spokesman Shen Danyang said in a statement that China welcomed the settlement.

According to Mr Shen, the EU is the largest export market for Chinese solar panel products.