EC abandons PET anti-dumping probe after trade body withdraws complaint

Brussels announced earlier this week it had terminated the anti-subsidy investigation after a major leading European PET industry association withdrew its complaint.

Subsidies​

The Committee of Polyethylene Terephthalate Manufacturers in Europe (CPME) lodged its grievance with the EC in January 2011 alleging that PET imports originating from Oman and Saudi Arabia were being dumped in the European Union.

The complaint, made on behalf of leading players accounting for more than 50% of European production, accused certain producers of receiving subsidies which allowed them to sell their PET into the European market at a lower price in breach of fair competition rules. The CPME said the move was causing material injury to the European industry.

The EC opened an investigation in February saying the complaint contained “prima facie evidence of the existence of subsidization and of material​ injury”.

Highly confidential​

However, on 12 October, 2011 the trade body sent a letter to Brussels to withdraw the complaint.

FoodProductionDaily.com contacted the CPME to find out why it had performed the U-turn but a spokesperson said: “This matter is highly confidential and CPME is unable to make any comment.”​

Commission documents confirmed that the product subject to scrutiny had been PET with a viscosity number of 78 ml/g or higher, according to the ISO Standard 1628-5, that currently falls within CN code 3907 60 20.

The EC said that after receiving the CPME withdrawal it could not see a reason to continue as there was no evidence that closing the investigation would harm the European PET industry.

Other anti-subsidy probes​

In recent years, the EC has been asked to investigate a number of PET anti-dumping claims by EU producers. In September 2010, the body imposed anti-dumping measures against producers from Iran, Pakistan and Saudi Arabia.

The anti-subsidy measures meant that PET imports from Iran now face duty of € 139.7 a tonne and imports from Pakistan and the UAE €44.02 and €42.34 a tonne respectively. The size of the tariffs was levied in accordance with the magnitude of the subsidies – being particularly high in Iran.

The duties, applicable until 2015, have been designed to protect PET producers in the EU from artificially low priced imports. Brussels also renewed PET anti-dumping levies against China until late 2015