The Gulf Petrochemical and Chemical Association GPCA said that India’s imports of ethylene glycol (EG) from the Gulf may be seriously damaged due to the ongoing anti-dumping investigation launched by India against imports from Saudi Arabia, Kuwait, Oman, the United Arab Emirates and Singapore.
The inconsistent investigation practices of the Indian authorities regarding anti-dumping regulations have raised serious concerns under World Trade Organization (WTO) rules and threatened serious damage to the interests of the Gulf Cooperation Council (GCC, Gulf Cooperation Council) economies. Endangering imports of ethylene glycol (MEG) worth US$543 million, equivalent to 20% of India’s total imports of chemicals from the GCC region.
According to GPCA analysis, India is the second largest importer of chemicals in the Gulf region, and together with China, it accounts for more than one-third of the total exports of chemicals in the Gulf region.
On April 6, 2020, Indian authorities only terminated the investigation into imports from Saudi Arabia and continued to investigate imports from Kuwait, Oman and the United Arab Emirates. The partial termination of the investigation was inconsistent with India’s anti-dumping rules.
The GPCA therefore urges fair treatment for Gulf Cooperation Council (GCC) MEG producers and calls on Indian authorities to end partial investigations into imports of ethylene glycol from remaining GCC member states to resume all production level playing field for traders and allow continued export of MEG to India.
Ethylene glycol is an important raw material in the production of a variety of end-user products, from clothing and other textiles to packaging, kitchenware, engine coolants and antifreeze. Polyester and wool fabrics, upholstery, carpets and pillows, as well as lightweight and strong PET drink and food containers are all derived from ethylene glycol.
GPCA Secretary General Dr. Abdulwahab Al-Sadoun commented: “As the regional body for the chemical industry in the Arabian Gulf, the GPCA calls for the immediate termination of the partial anti-dumping investigation into the export of MEG to India. This harmful and ill-advised measure It will have deleterious effects not only on the GCC economies but also on bilateral trade, with the potential to damage India’s domestic market and undermine the long-term friendly relations between the two countries.”
He added: “This is India The latest in a series of trade-restrictive measures taken by authorities over the years against GCC chemicals exports. The GPCA is working closely with Gulf Cooperation Council (GCC) authorities to advocate for compliance with India’s international obligations and fairness to all WTO members. The investigation is being terminated immediately. During the pandemic, uninterrupted supply of chemical raw materials is critical to solving the global health crisis, and we call on authorities to work together to ensure that we maintain the raw materials needed for factories around the world today to ensure there are no shortages of essential raw materials.” </p
