GPCA warns exports to India may be investigated
Investigative practices by Indian authorities on anti-dumping regulations raise serious concerns under the WTO rules
GCC ethylene glycol (EG) imports into India may be severely hurt as a result of an ongoing anti-dumping investigation targeting imports from Saudi Arabia, Kuwait, Oman, UAE and Singapore, the Gulf Petrochemicals and Chemicals Association, the regional trade body representing the common interests of the chemical and allied industries in the Arabian Gulf stated in a press release.
The inconsistent investigative practices by Indian authorities on anti-dumping regulations raise serious concerns under World Trade Organization (WTO) rules and threaten to severely hurt GCC economies, jeopardizing US$ 543mn worth of mono ethylene glycol (MEG) imports, which is equivalent to 20% of total chemical imports from the region into India, according to GPCA analysis.
India is the second largest importer of GCC chemicals and accounts for over a third of total GCC export volume together with China.
On 6 April 2020, Indian authorities terminated the investigation for the sole imports from Saudi Arabia, and continued the investigation into imports from Kuwait, Oman and the United Arab Emirates. This partial termination of the investigation is inconsistent with Indian anti-dumping rules.
GPCA is therefore urging the fair treatment of GCC MEG producers and calling upon Indian authorities to terminate the partial investigation into MEG imports from the remaining GCC states, in order to restore a level playing field for all producers.
“This detrimental and ill-advised measure is having a harmful impact not just on GCC economies but also on bilateral trade, threatening to disrupt India’s domestic market and damage long-standing friendly relations between the nations,” commented Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA.