Pakistan and the European Commission (EC) will hold consultations on anti-dumping investigations on imports of Polyethylene Terephthalate (PET) from Pakistan on February 23-24, 2010 in Brussels. As per estimates, EU consumes around US$200 mln worth of PET from Pakistan, which is supplied by a company based only in Pakistan. The EC started anti-dumping investigation into alleged cut-priced exports of PET to the EU from Pakistan along with Iran and the United Arab Emirates (UAE).
EC started probe in September last year and according to the commission, it would investigate complaints from the PET Committee of Plastics Europe alleging that imports of certain PET, originating in Iran, Pakistan and the UAE are being dumped and are thereby causing material injury to the EU industry.
The commission also gathered company production costs and sales data from producers in Iran, Pakistan and the UAE, looking at trading information from July 1, 2008, to June 30, 2009. The commission said the committee had evidence PET imports from these countries have increased overall in absolute terms and in terms of market share. Also, given the volumes and the low prices concerned, there has been a negative impact on the market share held and prices charged by the EU industry, resulting in substantial adverse effects on its financial situation, causing significant job losses.
EC is particularly concerned about its domestic PET manufacturing industry, which allegedly suffered from the huge imported subsidised PET from Pakistan. As far as Pakistan PET is concerned, European PET manufactures contend that Pakistani PET is being subsidised, which makes it competitive in the European market and adversely impacts the competition in the market.