Bloomberg News

EU May Renew Levies on Bottle Material From Asia; Korea Spared

February 24, 2012

Feb. 24 (Bloomberg) -- The European Union threatened to renew tariffs against five Asian nations on a chemical used by plastic-bottle mold makers such as Resilux SA and bottlers including Coca-Cola Co. while ending a levy against South Korea.

The EU said it would review whether to let lapse the duties on polyethylene terephthalate, which is also used in plastic films and fibers, from India, Indonesia, Malaysia, Taiwan and Thailand. The 12-year-old import taxes punish exporters in these countries for selling polyethylene terephthalate in Europe below cost, a practice known as dumping.

The review “will determine whether the expiry of the measures would be likely, or unlikely, to lead to a continuation or recurrence of dumping and recurrence of injury,” the European Commission, the 27-nation EU’s trade authority in Brussels, said today in the Official Journal. A regular prolongation of the levies would be for five years.

The anti-dumping duties as high as 200.90 euros ($269) a metric ton had been due to expire next week following an initial renewal in 2007 and will now stay in place during the probe, which can last as long as 15 months. The EU today also opened an expiration review of separate anti-subsidy duties against India on polyethylene terephthalate.

The anti-dumping duties are as much as 200.90 euros a ton on India, up to 187.70 euros on Indonesia, as high as 160.10 euros on Malaysia, up to 143.40 euros on Taiwan -- depending on the company -- and 83.20 euros on Thailand. The levy against Korea that is expiring amounts to 148.30 euros a ton, from which four Korean producers including Honam Petrochemical Corp. had been exempted. The anti-subsidy duties against India are as high as 106.50 euros a ton.

Polyethylene Terephthalate

The reviews of the measures against India, Indonesia, Malaysia, Taiwan and Thailand result from a Nov. 25, 2011 request by a group on behalf of European producers that account for more than half the EU’s output of polyethylene terephthalate, according the commission. It didn’t identify any EU producers.

When renewing the duties against the six Asian nations in 2007, the EU identified Spain’s La Seda de Barcelona SA and Novapet SA as among the European manufacturers of polyethylene terephthalate. In unfair-trade cases against other countries involving the same product since then, the EU continued to identify Novapet as a European producer.

--Editor: Jones Hayden

To contact the reporter on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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